GAIL Q1 Results: Profit Misses Estimates As Expenses Rise
GAIL's net profit fell 19.8% over the preceding quarter to Rs 1,529.92 crore in the three months ended June.
GAIL India Ltd.'s quarterly profit fell, missing estimates, as expenses rose.
Net profit of the gas distributor fell 19.8% over the preceding quarter to Rs 1,529.9 crore in the three months ended June, according to its exchange filing. That compares with the Rs 1,699.6-crore consensus estimate of analysts tracked by Bloomberg.
Q1 FY22 Highlights (QoQ)
Revenue rose 11.8% to Rs 17,383.9 crore, against the estimated Rs 16,189.1 crore.
Operating profit declined 6% to Rs 2,411.3 crore, compared with the Rs 2,585-crore forecast.
Operating margin contracted to 13.9% from 16.5%. Analysts had pegged the metric at 15.9%.
Other income declined 65.2% to Rs 197.6 crore.
Total expenditure (excluding excise duty) increased 15% to Rs 15,527.8 crore.
GAIL’s petrochemical spreads softened, and petrochemical volumes declined 38.6% sequentially, owing to a planned shutdown in April and May. Its transmission volumes fell 3.1% over the preceding three months. Its natural gas marketing and liquefied petroleum gas volumes rose 19.2% and 17.3% sequentially.
Key petrochemical cracks eased from their multi-year highs during the three months through June. Polyethylene, polypropylene and polyvinyl chloride naphtha spreads rose between 14% and 75% year-on-year, compared with a 52-108% jump in the preceding quarter.
Brent crude oil prices averaged at $69.1 a barrel in the reported period, up 13% over the preceding three months. LNG imports declined 6.8% quarter-on-quarter to 7,633 million metric standard cubic meters. That, too, when gas consumption in Asia’s third-largest economy dipped 0.4% to 15,590 mmscm, data released by the Petroleum Planning & Analysis Cell showed.
Shares of GAIL were trading 0.56% higher after the results were announced compared with a 0.17% gain in the benchmark Nifty 50.