Share price of GAIL India fell over 3% on Friday, a day after the company reported a sharp decline in its profit for the quarter ending March 2023. 102.95 per share on BSE.
Country’s largest gas distributor, Gail IndiaNet profit fell by 77.5% in Q4FY23 603.52 crores from 2,683.11 crore, YoY, on account of weakness in its gas transmission and petrochemicals segments.
Revenue grew by 22% during the quarter 32,858 crore led by higher gas prices.
GAIL’s natural gas transmission volume up 4.3% QoQ to 108.2 mmscmd, while gas transmission EBIT posted loss 16 crores. On the gas trading front, volumes increased by 7.3% QoQ to 96.5 mmscmd. gas trading was on EBIT 487.4 crores.
Company’s petrochemical segment reported Ebit loss 400.9 crore, while Paytm volume grew 82% QoQ to 118 kt.
Read here: GAIL’s Q4 profit plunges 77.5% due to weak performance in petrochemical segment
While GAIL’s QoQ volume gains were negated by higher expenses on the operational front, LNG and domestic gas prices have seen a correction to US$ 10-11 per mmBtu and US$ 6.5, respectively, on a QoQ basis. Going forward, management commentary regarding LNG sourcing and higher volume consumption led by CGD, refiners, petchem, fertilizer plants remains a key watchdog,” ICICI Direct said.
YES Securities believes that improvement in spot LNG prices and softening of domestic APM prices augurs well for GAIL, which will have ripple effects across all its business segments.
The brokerage has ‘Buy’ rating on the stock with a target price of 150 per share.
GAIL India shares were trading down 1.65% at 1:25 pm 104.50 on BSE at Rs.
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