Shares of Mahanagar Gas Limited, with a market capitalization of Rs 10,719 crores, hiked nearly 9 percent and currently trade at Rs 1,085. The stock hit its 52-week high mark today at a price of Rs 1,097.70.
Such movements in the stock prices of the company are observed after the company announced its Q4 as well as annual results for FY22-23. Details of the same are discussed later on in the report. The company’s Board also recommended a final dividend of Rs 16 per share (160 percent of its face value of Rs 10) for FY22-23.
Mahanagar Gas Limited (MGL) is a natural gas distribution company based in India engaged in the distribution of natural gas. The same is been conducted through the City Gas Distribution network of pipelines.
The company distributes compressed natural gas (CNG) for use in vehicles and piped natural gas (PNG) for commercial & industrial use, domestic household purposes, etc.
Having a glance at the quarterly financials reported by the company, the operating revenues and net profits have shown movements in opposing directions with the former reducing from Rs 1,838 crores in Q3 v/s Rs 1,772 crores in Q4 and the latter, during the same period, improved from Rs 172 crores to Rs 269 crores exhibiting an increase of 56 percent.
On a YoY basis, the company has been able to maintain healthy growth in both the above-mentioned metrics with operating revenues increasing from Rs 3,885 crores during FY21-22 to Rs 6,921 crores in FY22-23 and net profits moving from Rs 597 crores to Rs 790 crores keeping the timeframe the same.
Coming onto the profitability ratios, the basic ones such as the return on equity (ROE), as well as return on capital employed (ROCE), have witnessed a down movement in recent financial years. ROE numbers moved down from 20.03 percent during FY20-21 to 17.48 percent in FY21-22, and, ROCE, with similar movements, reduced from 27.19 percent to 23.83 percent.
According to the latest shareholding data available for the March quarter, promoters of the company hold a 32.5 percent stake, and Foreign Institutional Investors, on the other hand, consistently increased their stake and currently hold a 30.95 percent stake in the company.
Written by Amit Madnani
