Business Standard

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


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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