State-run natural gas processing and distribution giant, GAIL, showcased remarkable financial resilience as it reported a substantial 70.3% surge in its standalone net profit for the quarter ending September 30, 2023. The news sent the GAIL stock soaring, reflecting the market’s positive response to the company’s robust performance.
GAIL’s revenue for the second quarter of the current fiscal year was reported at Rs 31,822.6 crore, a figure that, while slightly lower than the previous quarter’s, did not overshadow the stellar profit numbers. Market estimates, as per Zee Business research, had anticipated a standalone net profit of Rs 1,596 crore and revenue of Rs 33,650 crore for the same period.
The market was pleasantly surprised as GAIL’s shares experienced a significant uptick of Rs 2.8, or 2.3%, reaching Rs 121.4 apiece on the BSE following the announcement.
Key to this financial triumph was GAIL’s quarter-on-quarter surge of 43.5% in earnings before interest, taxes, depreciation, and amortization (EBITDA), totaling Rs 3,491 crore for the reviewed quarter. This impressive figure notably outperformed Zee Business analysts’ projections, which had pegged the EBITDA at Rs 2,340 crore.
Additionally, GAIL’s margin, a pivotal indicator of profitability, exhibited a substantial improvement, surging by 340 basis points (bps) sequentially to reach 11%. This remarkable margin boost was significantly higher than the 7.0% estimated by Zee Business research for the fiscal second quarter, underscoring GAIL’s efficient financial management.
