GAIL (India)'s Q4FY16 standalone net profit rises 51% yoy to Rs.769.99 crore : Estimates Mixed

India Infoline News Service | Mumbai | May 25, 2016 16:55 IST

The company’s standalone revenue stood at Rs. 11,732.36 crore, down 17.79% yoy and 12.78% qoq.

GAIL India
GAIL (India), India's largest state-owned natural gas processing and distribution company, reported standalone net profit of Rs. 769.99 crore for the quarter ended March 31, 2016, registering growth of 50.76% yoy and 15.92% qoq. The company’s standalone revenue stood at Rs. 11,732.36 crore, down 17.79% yoy and 12.78% qoq.

Its standalone core operating profit of Rs. 1,223.69 crore for the quarter, clocked growth of 90.19% yoy and 5.85% qoq. Operating profit margin for the current quarter at 10.43% expanded by 592 bps yoy and 184 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 2,298.90 crore, declining by 24.36% yoy. Its standalone revenue for the period stood at Rs. 51,914.15 crore, registering decline of 8.51% yoy.

GAIL (India) Ltd's core operating profit stood at Rs. 4,268.23 crore, recording decline of 9.11% yoy. Operating margin for the current period at 8.63% expanded by 35 bps yoy.

GAIL (Q4 FY16) –A decent show:
For Q4 FY16, GAIL reported revenue of Rs. 11,732 crore, which was lower than IIFL estimate of Rs. 12,214 crore. Revenues for the quarter were lower by 17.8% yoy and lower by 12.8% qoq.

The company’s NG Transmission volumes were higher by 10.6% yoy while LPG transmission volumes were lower by 4.7% yoy. Petchem, LPG and LHC production was down by 12.1%, 16.4% and 5.1% respectively.

For Q4 FY16, GAIL reported an OPM of 10.4%, which was higher than IIFL estimate of 10.2%. Operating profit for the quarter were higher by 90.2% yoy and higher by 5.8% qoq. EBIT margins for all segments improved except LPG and liquid hydrocarbons. GAIL reported a PAT of Rs. 770 crore for the quarter under review, which was higher than IIFL estimate of Rs. 698.7 crore. PAT for the quarter were higher by 50.8% yoy and higher by 15.9% qoq. PAT performance was buoyed by tax write-back of earlier years.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 11732.36 12214 [3.94]
Standalone Net Profit 769.99 699 10.16

Bloomberg estimated the company’s consolidated net profit at Rs. 687.33 crore.

Stock Commentary:

GAIL (India) Ltd ended at Rs. 381.3, up by 10.25 points or 2.76% from its previous closing of Rs. 371.05 on the BSE.

The scrip opened at Rs. 375 and touched a high and low of Rs. 383.4 and Rs. 372.6 respectively. A total of 1814905(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 47066.95 crore.

The BSE group 'A' stock of face value Rs. 10 touched a 52 week high of Rs. 418 on 25-Jun-2015 and a 52 week low of Rs. 260.25 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 388 and Rs. 366 respectively.

The promoters holding in the company stood at 56.11 % while Institutions and Non-Institutions held 40.39 % and 2.57 % respectively.

The stock traded below its 50 DMA.

***Note: This is a NSE Chart



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