GAIL (India) Ltd (Q3 FY14)

India Infoline News Service | Mumbai |

GAIL reported net sales of Rs160bn (better than our expectations) indicating an increase of 28.3% yoy and 14.5% qoq.

CMP Rs346, Target Rs370, Upside 6.9%
  • Net sales rise 28.3% yoy driven by strong growth across all segments except petrochemicals which saw a muted growth of 5.2% yoy

  • Gas transmission volumes fall 8.6% yoy as gas production volumes declined from KG-D6 and PMT blocks. Petrochemical segment sales volumes were lower by 14.8% yoy

  • OPM at 14.3% was lower by 174bps yoy but jumped 382bps qoq

  • While EBIT margins for natural gas transmission plummeted, EBIT margins of LPG transmission saw a healthy jump; petrochemicals  segment saw a sharp fall in EBIT margins

  • With no subsidy burden during the quarter, EBIT margins for LPG and LHC segment saw a sharp jump

  • Gas price hike will impact petrochemical margins from FY15, Maintain Market Performer with a 9-month target price of Rs370

Result table
(Rs m)
Q3 FY14
Q3 FY13
% yoy
Q2 FY14
% qoq
Net sales
160,385
125,042
28.3
140,025
14.5
Material costs
(13,014)
(7,852)
65.7
(13,814)
(5.8)
Purchases
(108,368)
(86,941)
24.6
(99,132)
9.3
Personnel costs
(2,184)
(1,683)
29.8
(2,031)
7.5
Other overheads
(13,924)
(8,545)
62.9
(10,414)
33.7
Operating profit
22,896
20,021
14.4
14,634
56.5
OPM (%)
14.3
16.0
(174) bps
10.5
382 bps
Depreciation
(3,008)
(2,424)
24.1
(2,888)
4.1
Interest
(913)
(552)
65.4
(1,082)
(15.7)
Other income
2,082
1,542
35.0
2,219
(6.2)
PBT
21,057
18,587
13.3
12,883
63.5
Tax
(7,713)
(5,738)
34.4
(3,726)
107.0
Effective tax rate (%)
36.6
30.9
28.9
Adjusted PAT
13,345
12,849
3.9
9,157
45.7
Adj. PAT margin (%)
8.3
10.3
(196) bps
6.5
178 bps
Extra ordinary items
3,450
-
-
-
-
Reported PAT
BSE 491.50 [0.45] ([0.09]%)
NSE 491.80 [0.10] ([0.02]%)

***Note: This is a NSE Chart

 

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