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Hike in gas pipeline tariffs likely to remain a key trigger for GAIL

With margins for select segments set to fall on lower oil prices, tariff hikes will aid earnings growth

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Ujjval Jauhari
GAIL is trading about 16 per cent lower from its highs in August. 

Falling crude oil price has been a dampener and took a toll on the company’s profitability; it also raised concerns on the placement of high-priced LNG contracts.

During the previous quarter, the company continued to put up a good show in the natural gas marketing segment but there was disappoint in the petchem segment’s profitability. 

Analysts believe lower oil prices will impact performance in LPG/liquid hydrocarbons and petchem segments. ICICI Securities has already reduced the petchem segment’s profit estimates for FY19 and FY20 to factor in for

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First Published: Feb 25 2019 | 10:27 PM IST

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