Dear Shareholders,
Once again, it gives me immense pleasure to present the Annual Report
of Mahanagar Gas Ltd (MGL) for FY 2024-25, Share insights of our performance &
highlights and to outline the road ahead.
As you must be aware, global demand for natural gas experienced a
significant rebound in 2024-25, following a tough couple of years marked by the global
energy crisis. This heightened demand is primarily driven by the rapidly expanding
economies in Asia
and a partial recovery of Natural Gas (NG consumption in Europe.
However, the supply side continues to face constraints, with the growth in LNG production
struggling to keep up with the demand. Geopolitical tension; exacerbate the situation,
contributing to fluctuating prices and volatility in internationa markets though the level
of volatility ha; reduced in its intensity & frequency. As we look ahead, the coming
years are likely to be in favour of consumers.
India's Growing Natural Gas Market
Within India, the narrative is one of substantial investments in
infrastructure development leading to consistent growth, propelled by rapid urbanisation,
a burgeoning middle class and a push by the GOI to increase the share of NG to 15% of the
energy basket in order to meet the climate challenges & India's Net Zero
commitment. Development of the national gas grid, coupled with the City Gas Distribution
(CGD) network development, is making natural gas more accessible across the country. This
expanding landscape offers promising opportunities for both consumers and industries
alike.
Expansion of Natural Gas and LNG Infrastructure in India
The development of NG infrastructure in India is progressing at a
commendable pace. 34,233 km of natural gas trunk pipelines have been authorised by PNGRB
and 25,429 km is already operational & 10,429 km is under construction (including main
and auxiliary pipeline). Even more exciting are efforts made to connect hereto unconnected
regions like central & Eastern India which are demand-rich areas & linking new
domestic supply sources like North East (NE), with new transmission and distribution
pipelines being laid out across regions. The NE Gas Grid is emerging as a key part of this
expansion, connecting the north-eastern states to the broader national network.
In terms of LNG infrastructure, the commissioning of the Chhara
(Gujarat) LNG terminal added 5 million Metric Tonnes Per Annum (MMTPA) to the
country's regasification capacity. The country's total re-gasification capacity
now stands at 52.7 MMTPA. Inauguration of the first small scale LNG unit by GAIL
emphasized the importance of developing alternative technologies to meet the customers
demands. Further, ambitious plans are in place to further expand re-gasification capacity
to 61 MMTPA.
The City Gas Distribution Sector
The CGD sector continues to be the prime mover for growth in NG
consumption. While the fertiliser remains the largest consumer at ~30%, CGD contribution
has been noteworthy, now representing
~20% of the total gas consumption in a relatively short period. This
growth can be attributed to strong government support in terms of Domestic Gas allocation
& priority, authorisation of 307 GA's covering the length & breadth of the
country, rapid urbanisation, and the dedicated efforts of CGD companies like your company
to connect more households & commercial establishment, Industries & fuelling
vehicles.
The expansion of CNG infrastructure in India has been noteworthy. As of
31st March, 2025, the country had 8,067 CNG retail stations, registering an
impressive YOY growth of 17.58% demonstrating a significant increase from the 6,861
stations just a year earlier. The expanding CGD network and the rising number of CNG
stations, is steadily enhancing the appeal of CNG Fuelled vehicles in India.
The other segment of CGD i.e. D-PNG is also registering growth on YOY.
The Total DPNG connections in the country stands at ~1.5 Cr. and Commercial &
Industrial PNG connections are 45,373 & 20,461 respectively as on 31st
March, 2025.
The GOI is also doubling down on the growth of the Compressed Bio Gas
(CBG) by taking bold policy decisions like SATAT scheme, Blending Obligations for CGD on
one hand & on other hand giving infrastructure creation
push through lending support as well as subsidy for pipeline
connectivity of CBG plants with CGD networks.
Performance Highlights
This has been a year of exceptional allround achievements setting
stellar records. Your company constructed Highest number of CNG stations & connected
highest number of households in its history amongst other achievement.
Our CNG Sales volume increased by 11%, rising from 2.59 MMSCMD to 2.88
MMSCMD. Our Industrial and Commercial segment witnessed the highest growth, with volumes
increasing by 24% from 0.50 MMSCMD to 0.62 MMSCMD. MGL's Domestic PNG sales also saw
impressive growth, rising by 7%, from 0.52 MMSCMD to 0.55 MMSCMD. Overall, we continued to
experience a steady upward trend in gas sales, with the average volume reaching 4.05
MMSCMD, a solid ~12% increase from the previous year's 3.61 MMSCMD.
Matching the physical performance, our financial performance for the
year further reflects the favourable market conditions we have been able to capitalise on.
We have achieved an all-time high revenue of RS. 7,590 Cr. The other financial parameter
also points to gains we have been able to make like
EBITDA of RS. 1,510 Cr. and a net profit after tax of RS. 1,045 Cr..
These figures demonstrate our ability to generate sustainable value and manage costs
effectively, ensuring the long-term financial health of your company.
The Performance of Subsidiaries
We are excited to share that we are expanding our business through our
subsidiaries, aiming to broaden our portfolio and tap into emerging opportunities.
UEPL
On February 1, 2024, Unison Enviro Private Limited (UEPL) officially
became a wholly- owned subsidiary of MGL. With an equity investment of RS. 562 Cr., this
acquisition strengthens our capabilities and allows us to capitalise on new growth
opportunities while bringing synergies to operations of both the entities.
UEPL has added 26 CNG stations during the year and with this it has 82
stations as on 31st March, 2025. The company has added 12,002 domestic
households and have established connectivity for nearly 39,000 households and added 9
industrial and commercial customers during the year and thus have 66 industrial and
commercial customers as at 31st March, 2025. UEPL have laid ~96 kilometers of
steel and PE pipeline, taking the total length to over 362 kilometers.
During the year, the UEPL have achieved an overall average sales volume
of 0.18 MMSCMD as against 0.13 MMSCMD in the previous year, which is an increase of 41%.
UEPL has achieved an EBITDA of RS. 59.65 Cr. during financial year
202425 as against RS. 43.93 Cr. for financial year 2023-24. Profit after tax reported for
financial year is RS. 21.57 Cr. as against RS. 6.93 Cr. during previous financial year.
MLPL
To seize the opportunity of expanding the non-regulated LNG retailing
business for long haul trucking, your company entered into a JV with Baidyanath LNG
Private Limited to form Mahanagar LNG Private Limited (MLPL), in December 26, 2023. MLPL
is focused on building LNG stations for fuelling LNG vehicles. We have committed RS. 15.30
Cr. for a 51% equity stake in this venture as on FY 2024-25, reflecting our confidence in
its potential. During the year under review, MLPL commenced its Commercial sales w.e.f. 9th
October, 2024. It has achieved LNG sales volumes of 334 MT and operational revenue of RS.
2.55 Cr., with a positive EBITDA of RS. 0.48 Cr. for FY 2024-25.
Our Steps Towards Sustainable Mobility
We understand the importance of shifting towards a more sustainable
energy system, particularly as climate change continues to be a pressing global challenge.
Rising global temperature and the continued rise in greenhouse gas emissions serve as
stark reminders of the path we are on. As the world grapples with these environmental
concerns, it is clear that moving towards cleaner energy sources is no longer optional but
necessary for the health of the planet and future generations.
In line with our commitment to sustainability, your Company has
ventured into the electric vehicle mobility segment through an equity investment in 3EV
Industries Pvt. Ltd. (3EV) This investment marks our dedication to being a part of the
rapidly growing EV sector, both in India and globally. Through this, we aim to contribute
to a cleaner, greener environment while capitalising on the exciting potential of the EV
sector. Our dedication to this sustainable and innovative space is reflected in our
investment of
RS. 73 Cr. so far, with current shareholding of around 24.5% and a
total committed investment of RS. 96 Cr. In FY25, 3EV has increased its total revenue by
199% driven primarily by growth of 91% in vehicle sales over last year and increased
revenue from Battery-as-a-Service (BaaS) segment. The company has significantly reduced
its EBITDA loss from RS. 29.69 Cr. last year to RS. 8.48 Cr. loss this year.
To hedge our bets for future, your company has also entered into
Battery Cell manufacturing by forming a Joint Venture (JV) with International Battery
Company Inc., USA. The JV will focus initially on manufacturing prismatic Li-ion Battery
cells for 2-3 wheeler Electric vehicles. The financial commitment in the JV will be RS.
350 Cr. The phase 1 capacity of 500 MWh is expected to get commissioned by 1st
quarter of FY27. Customer qualification trials are underway using cells currently being
imported from their South Korea facility.
Ensuring Reliable and Cost- Effective Supply Sources
Securing a reliable and economically viable supply of natural gas is
essential to our operations and critical for meeting the needs of our customers. Thus, we
have developed a flexible sourcing strategy that adapts to market changes efficiently.
This includes the continuous monitoring of natural gas prices to capitalise on
opportunities that help us manage costs and secure a steady supply. We partner with
numerous suppliers to effectively navigate price fluctuations and supply challenges.
Investing in a Robust Future
To support our growth ambitions and continue delivering exceptional
service, we recognise the importance of a robust, well- maintained infrastructure. With
this in mind, we plan to implement a comprehensive
strategy that will allow us to scale effectively. We are committed to
making substantial investments in our infrastructure to not only accommodate our growing
customer base but also enhance the quality of our offerings. Our planned investments will
support the expansion of our network and improve our service delivery. Over the next five
years, we have a clear roadmap that includes laying of ~350 kilometres of Steel pipelines,
~1600 kilometres of PE pipelines and the development of ~200 new CNG stations across our
operational areas. These investments are vital for meeting the increasing energy demands
of the regions we serve and will help solidify our position as a leading CGD Company.
Safety
We believe that a safe and supportive workplace is the foundation of
operational excellence, employee well-being, and public trust. Our commitment to the
highest standards of occupational health and safety has once again earned recognition at
both national and global levels. We are proud to share that MGL was honoured with
"Four Golden Stars" by the National Safety Council of India (NSCI) for our
outstanding performance in Occupational Health and Safety (OHS) Management Systems. This
accolade reflects our dedication to maintaining robust safety protocols and a proactive
approach to health management.
Further underscoring our leadership in this critical domain, MGL was
recognised as a "Winner" in Excellence in Safety Training at the 22nd
Greentech Global Workplace Safety Awards 2024. Our efforts to embed safety into the very
fabric of our organisational culture have also been celebrated with the Platinum Award for
Best Warehouse Safety Practices in the Public Utility Service Sector by the APEX India
Foundation.
CSR
Our responsibilities extend beyond business we are deeply committed to
creating lasting, positive impact in the communities we serve. Through our flagship
"We Care" initiative, we have launched several transformative projects that
reflect our vision of inclusive and sustainable development.
ThrougRs. 40 impactful initiatives aligned witRs. 15 UN Sustainable
Development Goals, we are transforming lives across health, education, livelihoods, and
environmental conservation. Our programs, such as MGL Vikas, enhance rural livelihoods,
while
MGL Aarogya supports healthcare for vulnerable groups, including
pediatric cancer patients and TB elimination efforts. MGL Hunar equips youth with market-
driven skills, and MGL Hariyali promotes ecological restoration through innovative
projects like beekeeping and rapid forest. By collaborating with NGOs and government
bodies, we ensure long-term, inclusive impact, fostering equitable opportunities and
uplifting marginalized communities. One of our most impactful initiatives, the Shashwat
Gram project, embodies a holistic model for rural development.
Our investments in rural infrastructure, ranging from the construction
of toilets to establishing Anganwadi centres, have been complemented by vocational
training programs and health camps. The result is measurable: improved quality of life,
reduced migration, and a greater sense of community empowerment.
Embracing Opportunities for Growth
As we turn the page on another remarkable year, I am reminded that our
story is still unfolding. I believe the next chapter is full of promise and possibility
and I am excited to see the impact we will make together. To our team members, customers
and stakeholders, I offer my sincere gratitude for being a part of this journey. Let us
move forward with enthusiasm, determination and a purpose of achieving greater things
together.
Regards,
Sandeep Kumar Gupta Chairman