GAIL (India) Ltd (Q1 FY14)

India Infoline News Service | Mumbai |

Transmission segment margins were lower on the back of tariff cuts implemented for both natural gas and LPG pipelines implemented over the past couple of quarters

CMP Rs329, Target Rs340, Upside 3.3%

  • Net sales rise 16.1% yoy driven by higher revenues from the natural gas trading and petrochemical segments

  • Gas transmission volumes fall 10% yoy but remained flat sequentially as decline in KG-D6 production was offset by higher spot LNG imports Petrochemical segment sales volumes jumped 83.3% yoy and 3.1% qoq

  • OPM at 11.7% was lower by 561bps yoy and 208bps qoq

  • EBIT margins fell for all segments except petrochemicals; LPG and liquid hydrocarbon segment reported a negative EBIT on the back of higher than expected subsidy burden

  • Transmission segment margins were lower on the back of tariff cuts implemented for both natural gas and LPG pipelines implemented over the past couple of quarters

  • Gas price hike will impact petrochemical margins from FY15, Maintain Market Performer with a 9-month target price of Rs340

Result table
(Rs m)
 Q1 FY14
 Q1 FY13
 % yoy
 Q4 FY13
 % qoq
Net sales
 128,998
 111,120
 16.1
 124,707
 3.4
Material costs
 (10,495)
 (5,956)
 76.2
 (8,862)
 18.4
Purchases
 (92,693)
 (77,242)
 20.0
 (86,211)
 7.5
Personnel costs
 (2,004)
 (1,636)
 22.5
 (2,371)
 (15.5)
Other overheads
 (8,722)
 (7,061)
 23.5
 (15,276)
 (42.9)
Operating profit
 15,084
 19,225
 (21.5)
 11,988
 25.8
OPM (%)
 11.7
 17.3
 (561) bps
 9.6
 208 bps
Depreciation
 (2,808)
 (2,169)
 29.5
 (2,726)
 3.0
Interest
 (612)
 (588)
 4.1
 (549)
 11.3
Other income
 577
 378
 52.6
 2,696
 (78.6)
PBT
 12,241
 16,846
 (27.3)
 11,409
 7.3
Tax
 (4,159)
 (5,508)
 (24.5)
 (5,227)
 (20.4)
Effective tax rate (%)
 34.0
 32.7
45.8
Reported PAT
 8,082
 11,338
 (28.7)
 6,182
 30.7
PAT margin (%)
 6.3
 10.2
 (394) bps
 5.0
 131 bps
Ann. EPS (Rs)
 25.5
 35.8
 (28.7)
 19.5
 30.7
Source: Company, India Infoline Research

Segmental performance
GAIL (India) Ltd
BSE 343.50 [2.05] ([0.59]%)
NSE 344.30 [1.05] ([0.30]%)

***Note: This is a NSE Chart

 

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