Shares of GAIL (India) are likely to remain in focus on Friday, May 22, after the state-run energy major reported a weak set of earnings for the fourth quarter, with profitability and operating margins coming under pressure despite strong revenue growth.
The company reported revenue of ₹34,773 crore for the March quarter, marking a 21% increase from ₹24,050 crore in the previous quarter. Revenue also came in higher than the CNBC-TV18 poll estimate of ₹33,266 crore.
However, profit after tax (PAT) declined 21.2% sequentially to ₹1,262 crore, compared to ₹1,603 crore in the December quarter. The figure was also below analysts’ expectations of ₹1,325 crore.
Operating performance weakened sharply during the quarter. EBITDA fell 56.6% to ₹1,152 crore from ₹2,655 crore in the previous quarter, missing the CNBC-TV18 poll estimate of ₹2,342 crore.
EBITDA margins contracted significantly to 3.3% from 7.8% sequentially. Street estimates had pegged margins at around 7%.
The company’s natural gas marketing business reported an EBIT loss of ₹151 crore during the quarter, compared to a positive EBIT of ₹853 crore in the previous quarter, indicating pressure in the segment.
On the other hand, the natural gas transmission business remained strong, with EBIT rising to ₹1,881 crore from ₹1,376 crore sequentially.
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