Motilal Oswal: GAIL India Q1 Review - Pain In Gas Trading Hurts Profitability; Should Abate In FY22E

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.GAIL India Ltd. reported lower-than-estimated Ebitda, led by poor performance in gas trading, petrochemicals and liquefied petroleum gas hydro carbons.With revival in crude oil prices, we believe these segments would remain lucrative for the company in the coming quarter. Currently, GAIL India is operating at approximately 95% of FY20 (trading and transmission) volumes and the company expects it to normalise to pre-Covid-19 levels in another two months.Currently, volumes stand at 109.5 million metric standard cubic meter per day for transmission and 87.2 million metric standard cubic meter per day for trading.Also, demand from fertilizer and power is stabilizing again. However, some delay is expected in the start-up of plants (Matix Fertilizer and Chemicals Ltd., Ramagundum Fertilizers and Chemicals Ltd. and Mangalore Chemcials and Fertilizers Ltd.), owing to Covid-19 led reasons..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: GAIL India Q1 Review - Pain In Gas Trading Hurts Profitability; Should Abate In FY22E

Motilal Oswal: GAIL India Q1 Review - Pain In Gas Trading Hurts Profitability; Should Abate In FY22E

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