Muted Volume Growth with Sequential Margin Contraction Mahanagar Gas (MAHGL) has reported a muted performance (albeit marginally above our estimates) in 3QFY20. While total sales volume grew by a muted 3% YoY (+2% QoQ) and EBITDA/ scm sequentially declined to Rs9.2 (vs. Rs9.9 in 2QFY20). Despite a muted growth in sales volume, its net sales decreased by 1% YoY and 5% QoQ to Rs7.4bn (2.3% below our estimate) mainly due to ~Rs2/scm cut in CNG & PNG prices during the quarter. Overall price realisation of Rs26.5/scm decreased by 7% YoY and 4% QoQ. Its gross profit grew by 6% YoY to Rs3.9bn on account of 8% YoY decline in cost of natural gas. EBITDA increased by 8% YoY (-5% QoQ) to Rs2.6bn (in line with...