Mahanagar Gas plans Rs 700-800 crore capex for FY24, says MD

Mahanagar Gas recorded a net profit of Rs 268.8 crore in Q4 of FY23.

The capex for Mahanagar Gas Limited (MGL) will be in the range of Rs 700- 800 crore for the financial year 2023-24, said Ashu Shinghal, Managing Director, MGL in an exclusive interview with Moneycontrol.

The company’s capex for the previous financial year (FY23) was around Rs 600 crore, Shinghal added.

“Typically, almost 50- 60 percent goes in domestic PNG (piped natural gas) and the balance goes in CNG (compressed natural gas) segment and operational capex,” said Shinghal.

MGL beat market expectations for the fourth quarter as the city gas distribution company recorded a net profit of Rs 268.8 crore in the fourth quarter of fiscal year 2022-23.

Also Read: Mahanagar Gas Q4 net profit at Rs 269 crore, beats estimates; final dividend declared

The net profit is more than double as compared to Rs 131.8 crore clocked in the corresponding period of the previous financial year.

Shinghal told Moneycontrol that the company’s capex for FY24 will be funded using internally available resources.

“Around Rs 1,400- 1,500 crore is available in our balance sheet. Capex will be funded through PAT (profit after tax) as well; this year we have Rs 790 crore as PAT. If we minus depreciation and dividend, we have around Rs 750 crore kitty for this year. We will be able to manage capex with the cash flow,” he said.

For the entire FY23, Mahanagar Gas reported a net profit of Rs 790 crore, which is 32 percent higher against Rs 596 crore recorded in FY22.

MGL also said its board has declared a dividend of Rs 16 per equity per share, having a face value of Rs 10 each (i.e. 160 percent) for FY23.