GAIL Q1 Profit Misses Estimate But Margin Expands
GAIL’s net sales fell 15.4 percent, missing analyst estimates.
State-owned gas processing and distribution company GAIL India Ltd.’s profit missed analyst estimates after the company’s net sales fell across all its segments.
Net profit rose to Rs 1,026 crore in the April to June quarter compared to the Bloomberg consensus estimate of Rs 1,043 crore, GAIL said in a stock exchange filing on Thursday. The is not comparable to last quarter’s bottomline which took a hit on account of a Rs 788 impairment charge.
Net sales declined 15.4 percent to Rs 11,570 crore, missing the estimate of Rs 13,061 crore.
Revenue from its natural gas marketing segment, the highest contributor to its topline, fell 20.4 percent to Rs 8,520.3 crore. Revenue earned from transmission of natural gas and liquefied petroleum gas fell 3.6 percent to Rs 1318.5 crore. The petrochemicals business too saw a 24.4 percent decline in revenue.
The state-owned company reported healthy operational numbers due to strong performance in the gas transmission and hydrocarbon segments. It was further aided by better price realisation and decrease in cost of production.
Operating income rose 22.1 percent to Rs 1899 crore, while operating margin expanded more than 500 basis points sequentially to 16.6 percent.
Shares closed 3.39 percent lower on Thursday prior to the earnings announcement.