MGL: Q4 FY24 results below estimates, stock falls over 3%
MGL share price: Total volume for the quarter reached 343.91 SCM million, marking an increase of 1.8%. Compressed Natural Gas (CNG) volumes rose marginally by 0.2% to 242.57 SCM million. Piped Natural Gas (PNG) volumes showed a notable increase of 6.1% to 101.34 SCM million.
MGL share price: Mahanagar Gas Ltd. (MGL) reported its financial results for the fourth quarter of the fiscal year 2024, indicating a decline in profit and flat revenues compared to expectations. At around 12:27 a.m., shares of MGL traded -3.18 per cent, or Rs 42.30, lower at Rs 1287.55 apiece. Meanwhile, its market capitalisation stood at Rs 12,718.13 crore at around the same time.
Profit After Tax (PAT) declined by 16.5% to Rs 265 crore in comparison to last year. MGL recorded revenues of Rs 1567 crore, marginally lower than Q4 FY23, representing a decrease of 0.1%. Zee Business analysts had pegged MGL's Q4 FY24 revenue at Rs 1560 crore. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 394 crore, down by 12.2% from Q4 FY23 value. Margins for the quarter were 25.1%, a decrease from last year's 26.9%.
Total volume for the quarter reached 343.91 SCM million, marking an increase of 1.8%. Compressed Natural Gas (CNG) volumes rose marginally by 0.2% to 242.57 SCM million. Piped Natural Gas (PNG) volumes showed a notable increase of 6.1% to 101.34 SCM million.
Dividend Announcement:
MGL declared a final dividend of Rs. 18 per equity share.
Brokerage views:
In light of MGL's performance, brokerage firm Macquire maintained a Neutral stance on the company with a target of Rs. 1300. According to stock research portal Trendlyne, the consensus recommendation on MGL from 29 analysts is ‘hold’, with 14 of them signalling a ‘strong buy’. The average 1-year price target for the stock is set at Rs 1395, implying a potential run-up of 8 per cent.
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