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%
Source: Company, India Infoline Research
Segmental performance
-
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
| (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 |
Segmental performance
|
***Note: This is a
NSE Chart
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