Mahanagar Gas Ltd (MGL) has reported its financial performance for Q3 FY25, showcasing a solid increase in sales but a decline in profits. The company continues to strengthen its market presence while navigating industry challenges.
Mahanagar Gas Sales Surge with a 11.91% Growth
MGL recorded sales of Rs. 19,290.10 million in Q3 FY25, marking an 11.91% increase from Rs. 17,237.70 million in Q3 FY24. The company has successfully expanded its revenue base despite fluctuating industry conditions.
Other Income Slightly Declines
The company reported Rs. 462.90 million in other income for Q3 FY25, reflecting a slight decline of 3.70% from Rs. 480.70 million in Q3 FY24. This minor drop did not significantly impact the overall financial performance.
Operating Profit Falls by 27.39%
MGL’s Profit Before Interest, Depreciation, and Tax (PBIDT) stood at Rs. 3,607.10 million, showing a 27.39% decline compared to Rs. 4,967.60 million in the previous year’s quarter. Increased operational costs played a role in this dip.
Interest Expenses Rise by 24.26%
The company spent Rs. 33.80 million on interest payments in Q3 FY25, representing a 24.26% increase from Rs. 27.20 million in Q3 FY24. Higher borrowing costs have contributed to this rise.
Profit Before Depreciation and Tax Declines
MGL reported a Profit Before Depreciation and Tax (PBDT) of Rs. 3,573.30 million, down 27.67% from Rs. 4,940.40 million in Q3 FY24. This drop aligns with the overall decline in operating profitability.
Depreciation Expenses Increase
The company recorded Rs. 791.10 million in depreciation for Q3 FY25, reflecting a 15.84% rise from Rs. 682.90 million in Q3 FY24. This increase indicates continued investment in assets.
Profit Before Tax Falls by 34.72%
MGL posted a Profit Before Tax (PBT) of Rs. 2,782.20 million in Q3 FY25, a decline of 34.72% compared to Rs. 4,257.50 million in Q3 FY24. Increased expenses and lower operating margins have impacted profitability.
Tax Outgo Drops Sharply
The company’s tax expenses stood at Rs. 528.50 million, a significant 51.32% decrease from Rs. 1,085.70 million in Q3 FY24. This reduction provided some relief despite the profit decline.
Deferred Tax Increases
MGL reported Rs. 122.00 million in deferred tax for Q3 FY25, reflecting a 32.90% rise from Rs. 91.80 million in the previous year’s quarter. This increase indicates adjustments in tax liabilities.
Net Profit Drops by 28.95%
The company registered a Profit After Tax (PAT) of Rs. 2,253.70 million in Q3 FY25, a decline of 28.95% from Rs. 3,171.80 million in Q3 FY24. Reduced operating profits and rising costs impacted the bottom line.
Equity Remains Unchanged
MGL maintained its equity at Rs. 987.80 million, unchanged from the previous year’s quarter, indicating stability in its capital structure.
Operating Margin Declines
The PBIDT margin fell by 35.11%, standing at 18.70% in Q3 FY25 compared to 28.82% in Q3 FY24. The decline reflects higher expenses and pricing pressures in the market.
Mahanagar Gas Ltd Q3 FY25 Financial Summary
| Metric | Q3 FY25 (Rs. Million) | Q3 FY24 (Rs. Million) | % Change |
|---|---|---|---|
| Sales | 19,290.10 | 17,237.70 | +11.91% |
| Other Income | 462.90 | 480.70 | -3.70% |
| PBIDT | 3,607.10 | 4,967.60 | -27.39% |
| Interest | 33.80 | 27.20 | +24.26% |
| PBDT | 3,573.30 | 4,940.40 | -27.67% |
| Depreciation | 791.10 | 682.90 | +15.84% |
| PBT | 2,782.20 | 4,257.50 | -34.72% |
| Tax | 528.50 | 1,085.70 | -51.32% |
| Deferred Tax | 122.00 | 91.80 | +32.90% |
| PAT | 2,253.70 | 3,171.80 | -28.95% |
| Equity | 987.80 | 987.80 | 0.00% |
| PBIDT Margin (%) | 18.70% | 28.82% | -35.11% |
The Bottom Line
Mahanagar Gas Ltd has delivered strong sales growth, but profitability has faced pressure due to rising costs and reduced margins. The company continues to focus on operational efficiency while maintaining steady revenue expansion. Investors and stakeholders will closely watch future developments to assess MGL’s strategies for profit recovery.
Disclaimer: This blog is for informational purposes only and should not be considered as financial advice or any buy/sell recommendations.
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