MGL in a filing stated that, with the countrywide lockdown, there was a sudden dip in PNG and CNG volumes for all consumer segments except PNG being supplied to homes.
Thereby, the company added, “The sudden dip in volume was material. However, with the reopening of business activities, we are experiencing volume buildup across all consumer segments except commercial consumers. While the impact on the dip in demand so far has been material, we are hopeful that there would be an increase in the volumes on ease of lockdown”.
Because of the pandemic, MGL overall expects the profitability to be impacted in the fiscal.
MGL said, “Due to COVID-19 pandemic, the profitability of the Company would be impacted in 2020-21 considering lower sales volume likely as compared to the previous year. Liquidity position may not be sizeably impacted in view of digital payment channels being used except in-household customer category where usage of payment channels of cheque drop boxes and payment across the counter is also common. The Company is debt-free and has a treasury surplus”.
Further, MGL added, “The earnings on treasury surplus could be lower due to conditions in financial markets and more safer avenues chosen for parking the investments. In 2019-20 sales volume was impacted in last few days due to lock down. However, impact on capital and financial resources was marginal in view of limited period involved”.
On Sensex, the MGL stock ended flat at Rs969.30 per piece.
