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Mumbai-based city gas distributor Mahanagar Gas continued its good run in the recent September 2016 quarter. Aided by healthy volume growth and lower cost of sourcing gas, the company’s profit rose a solid 41 per cent year-on-year, much higher than the 19 per cent growth in the June 2016 quarter. Overall, for the six months ended September 2016, volumes sold by Mahanagar Gas increased more than 6 per cent year-on-year while profit has risen about 30 per cent. This is despite the sales value during the period declining about 5 per cent due to passing on some of the lower sourcing costs to customers. Volume growth has been a healthy 4-7 per cent across categories — CNG, PNG domestic and PNG industry/commercial. Operating profit margin improved to 31.3 per cent in the recent six months from 23.4 per cent in the year-ago period; net profit margin rose to 19.4 per cent from 14.3 per cent. The recent 18 per cent cut in domestic gas price, applicable from October 2016 to March 2017, will also aid Mahanagar Gas.
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