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MAHANAGAR GAS 2021-22 Annual Report Analysis
Sun, 7 Aug

MAHANAGAR GAS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MAHANAGAR GAS Income Statement Analysis

  • Operating income during the year rose 64.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.5% in FY22 as against 47.3% in FY21.
  • Depreciation charges increased by 13.0% and finance costs increased by 4.7% YoY, respectively.
  • Other income grew by 3.7% YoY.
  • Net profit for the year declined by 3.7% YoY.
  • Net profit margins during the year declined from 31.5% in FY21 to 18.5% in FY22.

MAHANAGAR GAS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 19,673 32,355 64.5%
Other income Rs m 837 868 3.7%
Total Revenues Rs m 20,509 33,222 62.0%
Gross profit Rs m 9,308 9,233 -0.8%
Depreciation Rs m 1,737 1,963 13.0%
Interest Rs m 72 75 4.7%
Profit before tax Rs m 8,336 8,063 -3.3%
Tax Rs m 2,140 2,093 -2.2%
Profit after tax Rs m 6,196 5,969 -3.7%
Gross profit margin % 47.3 28.5
Effective tax rate % 25.7 26.0
Net profit margin % 31.5 18.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

MAHANAGAR GAS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 13 billion as compared to Rs 11 billion in FY21, thereby witnessing an increase of 19.4%.
  • Current assets rose 5% and stood at Rs 18 billion, while fixed assets rose 19% and stood at Rs 34 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 52 billion as against Rs 46 billion during FY21, thereby witnessing a growth of 14%.

MAHANAGAR GAS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 32,324 35,973 11.3
 
Current Liabilities Rs m 11,109 13,266 19.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 46,011 52,338 13.8
 
Current assets Rs m 17,543 18,451 5.2
Fixed Assets Rs m 28,468 33,887 19.0
Total Assets Rs m 46,011 52,338 13.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MAHANAGAR GAS Cash Flow Statement Analysis

  • MAHANAGAR GAS's cash flow from operating activities (CFO) during FY22 stood at Rs 9 billion, an improvement of 12.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -5 billion, an improvement of 21.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion, an improvement of 11% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 543 million from the Rs 128 million net cash flows seen during FY21.

MAHANAGAR GAS Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 8,055 9,037 12.2%
Cash Flow from Investing Activities Rs m -4,439 -5,390 -
Cash Flow from Financing Activities Rs m -3,488 -3,103 -
Net Cash Flow Rs m 128 543 323.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MAHANAGAR GAS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.4, an decline from the EPS of Rs 62.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 789.8, stands at 13.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 199.2 327.5
TTM Earnings per share Rs 62.7 60.4
Diluted earnings per share Rs 62.7 60.4
Price to Cash Flow x 14.5 12.2
TTM P/E ratio x 18.6 13.5
Price / Book Value ratio x 3.1 2.7
Market Cap Rs m 100,605 97,032
Dividends per share (Unadj.) Rs 23.0 25.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MAHANAGAR GAS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY22, from 1.6x during FY21. 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 deteriorated and stood at 108.0x during FY22, from 116.9x during FY21. 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 declined and down at 16.6% during FY22, from 19.2% during FY22. 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 declined and down at 22.6% during FY22, from 26.0% during FY21. 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 declined and down at 11.5% during FY22, from 13.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.6 1.4
Debtors’ Days Days 237 208
Interest coverage x 116.9 108.0
Debt to equity ratio x 0.0 0.0
Return on assets % 13.6 11.5
Return on equity % 19.2 16.6
Return on capital employed % 26.0 22.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 1,169.8 to Rs 789.8, registering a loss of Rs 380.0 or around 32.5%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,336.6 (down 0.2%). Over the last one year it has moved up from 15,762.3 to 19,336.6, a gain of 3,574 points (up 22.7%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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

Annual Report FAQs

What is the current share price of MAHANAGAR GAS?

MAHANAGAR GAS currently trades at Rs 1,363.5 per share. You can check out the latest share price performance of MAHANAGAR GAS here...

What was the revenue of MAHANAGAR GAS in FY22? How does it compare to earlier years?

The revenues of MAHANAGAR GAS stood at Rs 33,222 m in FY22, which was up 62.0% compared to Rs 20,509 m reported in FY21.

MAHANAGAR GAS' revenue has grown from Rs 20,708 m in FY18 to Rs 33,222 m in FY22.

Over the past 5 years, the revenue of MAHANAGAR GAS has grown at a CAGR of 12.5%.

What was the net profit of MAHANAGAR GAS in FY22? How does it compare to earlier years?

The net profit of MAHANAGAR GAS stood at Rs 5,969 m in FY22, which was down -3.7% compared to Rs 6,196 m reported in FY21.

This compares to a net profit of Rs 7,935 m in FY20 and a net profit of Rs 5,464 m in FY19.

Over the past 5 years, MAHANAGAR GAS net profit has grown at a CAGR of 5.7%.

What does the cash flow statement of MAHANAGAR GAS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of MAHANAGAR GAS reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 9,037 m as compared to Rs 8,055 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -5,390 m as compared to Rs -4,439 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -3,103 m as compared to Rs -3,488 m in FY21.

Here's the cash flow statement of MAHANAGAR GAS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations6,5216,8469,8528,0559,037
From Investments-4,187-4,386-7,548-4,439-5,390
From Financial Activity-2,258-2,346-2,416-3,488-3,103
Net Cashflow76115-112128543

What does the Key Ratio analysis of MAHANAGAR GAS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of MAHANAGAR GAS reveals:

  • Operating profit margins witnessed a fall and stood at 28.5% in FY22 as against 47.3% in FY21.
  • Net profit margins declined from 31.5% in FY21 to 18.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of MAHANAGAR GAS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)38.835.139.347.328.5
Net Profit Margin (%)23.721.629.631.518.5
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of MAHANAGAR GAS

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