A gas pipeline runs inside an industrial complex. (Photographer: Luke Sharrett/Bloomberg)

GAIL’s Net Profit Misses Estimates In March Quarter

State-owned gas utility GAIL India Ltd.’s quarterly profit slumped, missing analyst estimates in the quarter ended March.

Net profit fell 19 percent over the previous three months to Rs 1,020 crore in the quarter ended March, GAIL said in a stock exchange filing. This fell short of the Bloomberg consensus estimate of Rs 1,343 crore. Revenue rose 8.7 percent to Rs 15,430 crore, higher than the estimated Rs 14,470 crore.

Earnings before interest, tax, depreciation and amortisation fell 13.9 percent to Rs 1,695 crore on a sequential basis, while operating margin contracted to 11 percent from 13.9 percent.

  • Petrochemicals business rose 13.5 percent to Rs 1,638.5 crore on a quarterly basis.
  • In the transmission services business, natural gas revenue fell 10.8 percent to Rs 1,187.8 crore, while LPG rose 7.7 percent to Rs 151.5 crore.

The company’s board has also recommended a final dividend of Rs 1.44 per share.

Shares of GAIL fell as much as 3.4 percent to Rs 312 apiece following the earnings annoucement. The stock fell 12.3 percent between January and March – its highest quarterly decline in more than three years. That compares to a nearly 10 percent decline on the S&P BSE OIl and Gas Index in the same period.

Here are highlights from the GAIL’s press conference to announce fourth quarter earnings:

  • The company achieved capital expansion of Rs 4,080 crore
  • Targets capex of Rs 6,400 crore for the financial year 2018-19
  • Supply from Gazprom is expected to land next month
  • First supply will start in the month of June
  • Executing 5000 km pipelines currently
  • Considers listing city gas unit