GAIL Q4 Results: Profit Rises On Higher Other Income, Lower Expenses
GAIL India Ltd.’s quarterly profit rose on higher other income and a fall in total expenditure.
Net profit of the gas distributor rose 28% sequentially to Rs 1,907.7 crore in the January-March period, according to its exchange filing. That compares with the Rs 1,829-crore consensus estimate of analysts tracked by Bloomberg.
Its revenue increased 0.6% over the preceding three months to Rs 15,549.1 crore, against the Rs 18,417-crore forecast.
Q4 Highlights (QoQ)
Operating profit rose 33.6% to Rs 2,564.8 crore.
Other income rose 20.7% to Rs 568.4 crore.
Total expenditure fell 4% to Rs 13,505.9 crore.
Operating margin expanded to 16.5% from 12.4%.
GAIL’s petrochemicals and natural gas marketing segments revenue rose 14.5% and 0.7%, respectively, over the previous quarter. Its transmission services segment revenue declined 5%.
Key polymer spreads, that rose to multi-quarter highs, supported the company’s petrochemicals segment. An increase in spot and crude-linked LNG prices aided its gas marketing segment.
Benchmark polyethylene and LPG prices rose 12% and 36%, respectively, over the previous quarter, while spot LNG prices jumped 22%. Brent crude prices, too, rose 36.1% sequentially to $60.7 per barrel.
India’s gas consumption rose 0.2% quarter-on-quarter to 158.9 million standard cubic metres per day in the reported period.
Shares of GAIL, however, fell as much as 5.6% after the results were announced, compared with a 0.1% drop in the benchmark BSE Sensex.