A pressure gauge sits on outdoor pipework at the underground gas storage facility. (Photographer: Martin Divisek/Bloomberg)

GAIL India’s Q2 Net Profit Rises, Beating Analyst Estimates

GAIL India Ltd.’s profit rose in the July-September quarter, beating analyst estimates on higher other income and marginally lower tax expenses.

Net profit rose 27.6 percent to Rs 1,309.6 crore on a sequential basis, GAIL said in a stock exchange filing. The Bloomberg consensus estimate stood at Rs 1,104 crore. Revenue increased nearly 9 percent to Rs 12,409.65 crore in the same quarter, surpassing the consensus estimate. The bottom line was aided by a 2.5 times increase in other income to Rs 293 crore

The state-owned company reported healthy operational numbers. Operating income rose around 9 percent to Rs 2,069.4 crore, while operating margin remained flat at 16.6 percent.

Shares of the company rose as much as 1.44 percent prior to the earnings announcement.

Other Highlights

  • LPG sales volume rose by 9 percent, but remained weak due to lower realisations.
  • EBIT margins for LPG segment contracted by 580 bps to 49.6 percent.
  • EBIT margins of transmission and petrochemicals segments expanded by 760 and 310 basis points, respectively, on higher volumes
  • Petrochemical volumes rose 34 percent and natural gas transmission volumes were up 6 percent
  • Gas trading volume were also up by 8 percent boosting the natural gas marketing segment.