10 February 2020 Mahanagar Gas (MAHGL) 3QFY20 EBITDA/scm and volume growth were in line with our estimates. Lower price of alternate fuels led to lower realization in the industrial/commercial segments; however, margin was supported by lower spot LNG prices and reduction in APM gas prices. Since the start of FY20, the company has struggled to clock volume growth (3% YoY for 9MFY20 v/s 10% YoY for 9MFY19), while its EBITDA margin has normalized over the same period. Also, the National Green Tribunal order to curb industrial pollution has limited impact for MAHGLs GAs. Thus, with limited volume growth prospects, we maintain EBITDA was up 8% YoY to INR2.6b (in-line) while PBT was up 8% YoY (v/s est. PAT was at INR1.9b (+25% YoY, -31% QoQ) as the company took benefit of DTL in 2QFY20. came in at INR9.2 (v/s INR8.8 in 3QFY19), as the company took a price cut of ~4% (INR2.