Gail India elevates on impressive Q4 earnings

The largest state owned natural gas processing and distribution company Gail India on May 25 has declared its Q4FY16 results, wherein for the March quarter the company has reported a net profit of Rs 770 crores. Net profits have seen a surge of 51 per cent as compared to Q4FY15. EBITDA for the period stands at Rs 1223.69  crores. Total income from operations stands at Rs 11732.36 crore for the quarter as against Rs 14270.62 crore for the corresponding period of the previous fiscal.

For the full fiscal year 2015-16, the company has reported a net profit of Rs 2,299 crore and a turnover of Rs 51,614 crore. In the previous financial year, it had a net profit of Rs 3,039 crore and a turnover of Rs 56,569 crore.

Q4, profit was higher because of higher (gas) transmission and trading margins. Sales, fell due to a 15 per cent drop in petrochemicals prices and 38 per cent decline in LPG price realisations.

GAIL is a Government of India undertaking, and operates in business verticals comprising of transmission of natural gas, liquid hydrocarbon, LPG transmission, petrochemicals, city gas distribution, and power. 

The shares on Thursday have increased over 1.15 per cent on an intra – day basis and are trading at Rs 885.70. The shares are up by 6 per cent in the duration of 6 months. The share prices are up, nearly after 2 weeks; good results have certainly boosted the investment sentiment in the stock.