With travel relaxations in Mumbai, Mahanagar Gas is a stock in focus. There has been a reduction in gas prices globally and a further cut is expected in domestic prices too. To get a detailed picture of the segment, CNBC-TV18 spoke to SM Ranade, CFO of Mahanagar Gas.
Talking about the industrial demand he said, “There was some adverse impact dues to the pandemic in the month of March, April, and May but it is heartening news for us that industrial volumes are coming back. In the current month almost we are at 80-90 percent level of our industrial volumes.”
Speaking about revenue flows, he said, “It will be a bit pre-mature to predict right now but Mahanagar Gas is bouncing back pretty fast. The recoveries have been pretty good in June and in fact in the domestic consumer category we are already doing better than what we are doing at normal levels of January and February. The restaurant category is a bit down but the domestic and household category is compensating for it. In the month of June, we have seen the recoveries are pretty good.”
He further added, “The only challenge which we are facing right now is with respect to CNG. CNG is our important customer category, nearly 73 percent volumes approximately come form CNG. As the unlock process continues we are sure even the CNG sector should come back pretty fast.”