Mahanagar Gas forecasts 6-7% year-on-year volume growth by year-end
Mahanagar Gas is expecting a volume growth of 6 to 7% by the end of this year, according to Ashu Shinghal, the Managing Director of Mahanagar Gas.
Mahanagar Gas Managing Director Ashu Shinghal on Wednesday said he expects the gas distribution company to post a volume growth of 6 to 7% by the end of this year.
"If you compare the second quarter (Q2) to the first quarter (Q1) of this year, the volume has increased by around 4%. This positive trend has continued into October and November, and we anticipate further growth by the end of the year, reaching a 6 to 7% year-on-year increase," Shinghal told CNBC-TV18.
In terms of convergence, Shinghal mentioned that the company has introduced specific schemes targeting heavy vehicles or commercial vehicles that can be converted to compressed natural gas (CNG).
To incentivise this shift and highlight the cost difference between CNG and petrol/diesel, the company is providing funding of up to ₹5 lakh per vehicle. Shinghal expressed optimism that these initiatives would lead to increased volume or convergence in the coming months.
Speaking about the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) per standard cubic meter (scm), Shinghal stated, "Our EBITDA per scm is in a very comfortable zone. In Q2, it was around ₹16. Currently, on a half-yearly basis, we are at ₹15 per scm EBITDA."
Discussing the Maharashtra EV Policy, Shinghal highlighted that the policy is already in place in Maharashtra. However, he noted that the targets set for the earlier years have not been achieved, and there is no clear enforcement mechanism.
Shinghal mentioned, "The targets for 2025 in the Maharashtra policy aim for around 25% of vehicles in certain segments to be electric. While less aggressive than Delhi's targets, even these numbers are yet to be achieved in Maharashtra. We believe we will have more time for implementation in Maharashtra concerning the EV policy."
Shinghal clarified that there are no acquisition plans at the moment.
Shares of Mahanagar Gas settled in the green at ₹1,117 on NSE. The stock has gained more than 6% over the past month.
Also Read | CNG two-wheelers may offer high mileage and low emissions but might stumble on performance
(Edited by : Ajay Vaishnav)
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