MAHANAGAR GAS 2023-24 Annual Report Analysis

Mon, 5 Aug

MAHANAGAR GAS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

MAHANAGAR GAS Income Statement Analysis

• Operating income during the year fell 0.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 55.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.5% in FY24 as against 20.9% in FY23.
• Depreciation charges increased by 22.8% and finance costs increased by 41.6% YoY, respectively.
• Other income grew by 56.2% YoY.
• Net profit for the year grew by 61.6% YoY.
• Net profit margins during the year grew from 13.9% in FY23 to 22.5% in FY24.

MAHANAGAR GAS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	56,776	56,659	-0.2%
Other income	Rs m	1,120	1,749	56.2%
Total Revenues	Rs m	57,896	58,407	0.9%
Gross profit	Rs m	11,841	18,439	55.7%
Depreciation	Rs m	2,311	2,839	22.8%
Interest	Rs m	94	133	41.6%
Profit before tax	Rs m	10,555	17,216	63.1%
Tax	Rs m	2,655	4,452	67.7%
Profit after tax	Rs m	7,901	12,764	61.6%
Gross profit margin	%	20.9	32.5
Effective tax rate	%	25.2	25.9
Net profit margin	%	13.9	22.5

Don't Miss: Key Information for Long-term Investors

MAHANAGAR GAS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 17 billion as compared to Rs 16 billion in FY23, thereby witnessing an increase of 8.9%.
• Current assets fell 5% and stood at Rs 19 billion, while fixed assets rose 36% and stood at Rs 55 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 74 billion as against Rs 60 billion during FY23, thereby witnessing a growth of 22%.

MAHANAGAR GAS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	41,342	51,302	24.1
Current Liabilities	Rs m	15,612	16,998	8.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	60,323	73,813	22.4
Current assets	Rs m	20,062	19,076	-4.9
Fixed Assets	Rs m	40,261	54,737	36.0
Total Assets	Rs m	60,323	73,813	22.4

MAHANAGAR GAS Cash Flow Statement Analysis

• MAHANAGAR GAS's cash flow from operating activities (CFO) during FY24 stood at Rs 16 billion, an improvement of 61.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -11 billion, an improvement of 66.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 115 million from the Rs 354 million net cash flows seen during FY23.

MAHANAGAR GAS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	9,693	15,679	61.8%
Cash Flow from Investing Activities	Rs m	-6,491	-10,820	-
Cash Flow from Financing Activities	Rs m	-2,848	-4,993	-
Net Cash Flow	Rs m	354	115	-67.6%

Current Valuations for MAHANAGAR GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 129.2, an improvement from the EPS of Rs 80.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,792.5, stands at 14.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	574.8	573.6
TTM Earnings per share	Rs	80.0	129.2
Diluted earnings per share	Rs	80.0	129.2
Price to Cash Flow	x	9.5	7.9
TTM P/E ratio	x	12.3	14.8
Price / Book Value ratio	x	2.0	2.4
Market Cap	Rs m	82,645	122,885
Dividends per share (Unadj.)	Rs	26.0	30.0

Ratio Analysis for MAHANAGAR GAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 130.4x during FY24, from 113.4x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 24.9% during FY24, from 19.1% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 33.8% during FY24, from 25.8% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 17.5% during FY24, from 13.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.3	1.1
Debtors’ Days	Days	2	2
Interest coverage	x	113.4	130.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.3	17.5
Return on equity	%	19.1	24.9
Return on capital employed	%	25.8	33.8

To see how MAHANAGAR GAS has performed over the last 5 years, please visit here.

MAHANAGAR GAS Share Price Performance

Over the last one year, MAHANAGAR GAS share price has moved up from Rs 1,056.3 to Rs 1,792.5, registering a gain of Rs 736.3 or around 69.7%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 31,027.6 (down 4.0%). Over the last one year it has moved up from 18,909.6 to 31,027.6, a gain of 12,118 points (up 64.1%).

Overall, the S&P BSE SENSEX is up 18.6% over the year.

(To know more, check out historical annual results for MAHANAGAR GAS and quarterly results for MAHANAGAR GAS)