MGL — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Moderator · Conference Operator

MR. S.

RAMESH – NIRMAL BANG INSTITUTIONAL EQUITIES Mahanagar Gas Limited May 07, 2025

Thank you, sir.

We will take our next question from the line of Nirmal Gore from Aditya Birla Sun Life.

Please go ahead.

Nirmal Gore

Thank you for the opportunity, sir.

I just wanted to ask if there is any status on the Bombay High Court led committee on the electric vehicle transition condition.

Moderator · Conference Operator

Thank you.

The next question is from the line of Yogesh Patil from Dolat Capital.

Please go ahead.

Yogesh Patil

Thanks for an opportunity, sir.

Sir, as you just mentioned 1.3 mmscmd is LNG gas sourcing, can you break it down in how much is crude linked and Henry Hub, if possible?

Mahanagar Gas Limited May 07, 2025

Moderator · Conference Operator

Thank you.

The next question is from the line of Kirtan Mehta from Baroda BNP Paribas Mutual Fund.

Please go ahead.

Kirtan Mehta

Thank you, sir, for the opportunity.

In terms of the CNG promotion scheme that we have run through FY ‘25, how was that sort of taken by the consumers, how much we spent and how much vehicles got added under different categories during the FY ’25?

Moderator · Conference Operator

Thank you.

The next question is from the line of Maulik Patel from Equirus Securities.

Please go ahead.

Thank you.

We will take our next question from the line of Mayank Maheshwari from Morgan Stanley.

Please go ahead.

Mayank Maheshwari

Thanks, sir.

My question was related to LNG and how has LNG trucking kind of picked up in the GAs for you, and what are you seeing in terms of trends or any incentives that you are kind of giving around the entire LNG market for trucking.

Thank you.

Moderator · Conference Operator

Thank you, sir.

The next question is from the line of Hardik Solanki from ICICI Securities.

Please go ahead.

Hardik Solanki

Yes, sir.

As you mentioned allocation, just want to check what was the allocation, the APM allocation and new gas allocation for the Q4, and what is in April so far?

Can you break down that?

Moderator · Conference Operator

Thank you, sir.

The next question is from the line of Nitin Tiwari from PhillipCapital.

Please go ahead.

Nitin Tiwari

Good evening.

Thanks for the call.

Just bookkeeping ones from my end.

So what was the CNG in kg in this quarter?

And also if you can update the industry and commercial volumes down, please.

Moderator · Conference Operator

Thank you.

We will take our next question from the line of Kartik from CLSA.

Please go ahead.

Kartik

Hello sir.

Thank you for taking my question.

I just wanted to ask about OPEX, so I can see that OPEX on a year-on-year basis has gone up 22% to Rs.

8.1 billion, which is roughly Rs.

18,018 Mahanagar Gas Limited May 07, 2025 crores, and gross profit has been down 6%.

So, just wanted to get a sense on how we should be thinking about OPEX from here on.

Moderator · Conference Operator

Thank you.

The next question is from the line of Kirtan Mehta from Baroda BNP Paribas Mutual Fund.

Please go ahead.

Kirtan Mehta

Thank you, sir, for one more opportunity.

In terms of the CAPEX, what is our guidance for the FY ‘26 and what will be the broad breakup?

Moderator · Conference Operator

Thank you.

Okay.

Thank you, sir.

The next question is from the line of Hardik Solanki from ICICI Securities.

Please go ahead.

Hardik Solanki

Sir, as you said that the CAPEX guidance would be around Rs.

1,300 crores, so can you just break down these GA wise how much would be to the new GA and basically in GA-3 and how much would be in the GA-1 and GA-2?

Moderator · Conference Operator

Thank you.

The next question is from the line of Karti, who is an investor.

Please go ahead.

Karti

Sir, with respect to the reduction in the APM gas already, is there any discussion on a CGD basis, industry basis, for either reduction of excise or inclusion of NG in the GST regime with the government?

Because I seem to understand that at present the volume of APM is at 40% and gradually it may be phased out to 0%.

So considering the parameter whether any discussion is there as a CGD industry as a whole to include either reduction in excise or maybe inclusion of NG in GST wherein it will promote more usage of NG and will align with the government’s vision also for increasing the gas volumes from 6% to 15%?

Is there any discussion going on, I just wanted to know on that.

Moderator · Conference Operator

Thank you.

We will take our last question from the line of Mr. S Ramesh from Nirmal Bang Institutional Equities.

Please go ahead.

S. Ramesh

Hello.

So before we close the call I just had a couple of thoughts.

One is, if you look at the slowdown in the auto sector, they are growing in at 2% to 3%, what is the kind of run rate one can expect in terms of CNG vehicle additions, what are you seeing this month?

And secondly, if you look at the price increases you have taken between December and April and the kind of stabilization in the input gas cost, are we now there in terms of having passed on most of the gas cost changes?

And eventually will we see volume growth and the price increase helping you improve the top line growth and margins?

How do you read that situation over the next one, two years?

Moderator · Conference Operator

Thank you.

On behalf of Nirmal Bang Institutional Equities Private Limited, that concludes this conference.

Thank you for joining us.

And you may now disconnect your lines.

(This transcript has been edited, without altering the content, to ensure clarity and improve readability.) Mahanagar Gas Limited May 07, 2025

Registered Address

MGL House, G-33 Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra

Contact details

[identifier removed]

Website

www.mahanagargas.com

CIN

L40200MH1995PLC088133

Questions and answers

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

The first question is from the line of Yash Nandwani from IIFL.

Please go ahead.

Yash Nandwani

Yes.

Thanks for the opportunity.

Sir, firstly on the sharp increase in OPEX per SCM this quarter, I understand there was some marketing scheme for CNG in 4th Quarter and also CSR expenditure typically gets booked in the last quarter.

So could you please share the amount spent on marketing and CSR in 4th Quarter?