Active Stocks
Sat May 18 2024 12:29:54
  1. Tata Motors share price
  2. 953.75 0.85%
  1. Power Grid Corporation Of India share price
  2. 316.10 0.88%
  1. ITC share price
  2. 436.50 -0.02%
  1. Tata Steel share price
  2. 167.90 0.39%
  1. State Bank Of India share price
  2. 820.35 0.31%
Business News/ Markets / Stock Markets/  GAIL India Q4 results: Share price falls over 3% as Q4 net profit tanks
BackBack

GAIL India Q4 results: Share price falls over 3% as Q4 net profit tanks

The largest gas distributor in the country, GAIL India's net profit in Q4FY23 plummeted significantly by 77.5% to ₹603.52 crore from ₹2,683.11 crore, YoY, due to weakness in its gas transmission and petrochemicals segment.

GAIL India's net profit in Q4FY23 plummeted significantly by 77.5% to ₹603.52 crore.Premium
GAIL India's net profit in Q4FY23 plummeted significantly by 77.5% to 603.52 crore.

GAIL India share price fell over 3% Friday, a day after the company reported a sharp drop in its profit for the quarter ended March 2023. The stock declined as much as 3.10% to hit an intraday low of 102.95 apiece on the BSE.

The largest gas distributor in the country, GAIL India's net profit in Q4FY23 plummeted significantly by 77.5% to 603.52 crore from 2,683.11 crore, YoY, due to weakness in its gas transmission and petrochemicals segment.

Revenues during the quarter increased 22% to 32,858 crore led by high gas prices. 

GAIL's natural gas transmission volumes increased 4.3% QoQ to 108.2 mmscmd, while gas transmission EBIT loss stood at 16 crore. On the gas trading front, the volumes stood at 96.5 mmscmd, up 7.3% QoQ. Gas trading EBIT was at 487.4 crore.

The company's petrochemical segment reported EBIT loss of 400.9 crore, while petchem volume increased 82% QoQ to 118 KT.

Read here: Gail's Q4 profit plummets 77.5% on weak show in petrochemicals segment

“Athough Gail's QoQ volume gains were negated by higher expenses on the operational front, on a QoQ basis LNG and domestic gas has largely seen correction in prices to US$10-11 per mmbtu and US$6.5 respectively. Going forward, management commentary regarding sourcing of LNG and higher volumes consumption led by CGDs, refiners, petchem, fertiliser plants remains key monitorable," ICICI Direct said.

Yes Securities believes that correction in spot LNG prices and moderation in domestic APM prices augurs well for GAIL’s with implications across its business segments.

The brokerage maintained a 'Buy' rating on the stock with a target price of 150 per share.

At 1:25 pm, the shares of GAIL India were trading 1.65% lower at 104.50 apiece on the BSE.

Catch Live Market Updates here

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 19 May 2023, 01:29 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started