The government-run gas utility GAIL (India) Ltd. stated on Monday that its standalone net profit for the June quarter fell by 51.5 percent year over year to Rs. 1,412 crore. In the same period last year, the company reported a net profit of Rs 2,915 crore.
Sequentially, the profit increased by 134 percent from the March quarter of the prior fiscal year’s (Q4FY23) net earnings of Rs 603.52 crore.
The profit number was significantly less than the 1,655 crore poll by CNBC-TV18
The company’s sales for the reviewed quarter was Rs 32,227.47 billion, down from Rs 37,572.14 billion year over year (YoY). This is a drop of 14.22%. Analysts surveyed by CNBC-TV18 predicted that the revenue will total Rs 31,949 crore.
The revenue from operations decreased 1.91 percent from Rs 32,858.20 crore in Q4 of FY23 on a quarterly basis.
Earnings before interest, taxes, depreciation, and amortization, or operational profit, increased by a quarter to Rs 2,432.6 crore in the June quarter. The EBITDA margin increased 660 basis points year over year to 7.5%.
In late-afternoon trades on Monday, shares of Gail (India) Ltd were trading 2 percent higher at Rs 119.85 per share. After global brokerage UBS double-upgraded GAIL to ‘Buy’ from ‘Sell’ and increased its target price on the company to Rs. 150 from Rs. 80 earlier, the stock increased in value during today’s opening trade.
According to UBS, the upside to realized tariffs, the scope of growing gas demand in India, and GAIL’s pipeline development are all being underappreciated by the market consensus at a 50% discount to historical averages for GAIL shares.
The aforementioned elements, according to the brokerage, might lead to a number of margin-driven upgrades in the stock’s consensus results.
The standalone Ebitda estimate for UBS for FY24–26, according to UBS, is 21–29%, which is higher than the market average.
