GAIL (India) rises after strong Q2 outcome

GAIL (India) rose 0.69% to Rs 438.95 at 9:18 IST on BSE after net profit surged 179.84% to Rs 924.65 crore on 15.54% decline in total income to Rs 12194.25 crore in Q2 September 2016 over Q2 September 2015.

The result was announced after market hours yesterday, 15 November 2016.

Meanwhile, the S&P BSE Sensex was up 297.15 points or 1.13% at 26,601.78

On BSE, so far 13,000 shares were traded in the counter as against average daily volume of 2 lakh shares in the past one quarter. The stock hit a high of Rs 444.95 and a low of Rs 437.50 so far during the day. The stock had hit a 52-week high of Rs 455.70 on 10 November 2016. The stock had hit a 52-week low of Rs 277 on 16 November 2015.

The large-cap company has equity capital of Rs 1268.48 crore. Face value per share is Rs 10.

GAIL (India)'s net profit was boosted by a turnaround in its petrochemical business and reduction in interest costs. The company's profit before tax (PBT) surged 151% to Rs 1375 crore in Q2 September 2016 over Q2 September 2015. The company's net profit rose 9% to Rs 924.65 crore in Q2 September 2016 over Q1 June 2016 (excluding the gains from stake sale in Mahanagar Gas), largely on account of better performance in natural gas transmission and petrochemical segment.

During the Q2 September 2016, GAIL (India)'s petrochemical business has seen a turnaround with sales jumping 61% on year-on-year basis. This has resulted increase in revenue in this segment by 53% to Rs 1358 crore and the profit stood at Rs 104 crore in Q2 September 2016 as against loss of Rs 364 crore in Q2 September 2015. The increase in net profit during Q2 September 2016 on year on year basis, was also supported by increase in natural gas marketing & transmission volumes by 8% and 12% respectively and liquid hydrocarbon sales by 9%.

State-run GAIL (India) is India's largest natural gas company with a market share of over 80% in natural gas transmission. Apart from natural gas transmission, distribution and processing, GAIL has diversified business interests in LPG transmission, petrochemicals, city gas projects and exploration and production activities. Government of India (GoI) holds 56.11% stake in GAIL (as per shareholding pattern as on 30 June 2016).

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