Mahanagar Gas expects six percent volume growth over the next five years, Sunil Ranade, chief financial officer (CFO), told CNBC-TV18.
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The natural gas distribution company reported earnings for the June-ended quarter with a top down beat. The quarter on quarter (QoQ) decline has also been lower than anticipated and a big positive is the margin figure of 49 percent which is well above street estimates.
“We are expecting a good volume rise and have already seen 115 percent rise in Q1FY22 to Q1 of the previous year; definitely we will be crossing levels of FY19-20 volumes. As regards medium to long-term guidance, we hold on to our statement of 6 percent volume rise that we can see on a 5-year CAGR basis,” Ranade said.
He further said, “We have already surpassed the level of February ’20 sales volume and it is irrespective of the fact the compressed natural gas (CNG) is yet to catch fully; we are still 4-5 percent short in CNG, which is a flagship customer category for us. Therefore, with further easing of lockdown the volume growth is going to be appreciable for us.”
According to him, it’s too early to predict volume by the mobile refuelling units. “Due to space constraint, we are unable to set up our CNG stations at many OMC outlets. However, mobile refuelling unit (MRU) being a compact facility, there will be additional outlets even at the OMC levels which will be available for CNG selling,” said Ranade.
For the entire management interview, watch the video