Gail India share price advances 7%; here's what is boosting rally in stock

Gail reported a 2.81 per cent rise in consolidated revenue from operations to Rs 33,981.3 crore in Q2FY25 as compared to Rs 33,049.7 crore in Q2 FY24

Gail India shares advanced 6.8 per cent on Wednesday and registered an intraday high of Rs 209.95 per share on BSE. The stock gained after the company reported Q2FY25 numbers. 

 

Around 10:49 AM, Gail India shares were up 6.31 per cent at Rs 208.8 per share on BSE. In comparison, the BSE Sensex was up 0.40 per cent at 79,791. The market capitalisation of the company stood at Rs 1,37,189.45 crore. The 52-week high of the stock was at Rs 246.35 per share on BSE and 52-week low of the stock was at Rs 122.9 per share.

 

Gail India reported its September quarter results on Tuesday after market hours. In its Q2 results, the company reported a 10.2 per cent rise in consolidated net profit to Rs 2,693.5 crore as compared to Rs 2,444.05 crore a year ago. Sequentially, Gail's net profit fell 15.37 per cent from Rs 3,182.9 crore.

 

 

Further, the company reported a 2.81 per cent rise in consolidated revenue from operations to Rs 33,981.3 crore in Q2FY25 as compared to Rs 33,049.7 crore in Q2 FY24.

 

The second-largest revenue segment, natural gas transmission of the company, saw profit rise 8 per cent to Rs 1,402.8 crore, up from Rs 1,294.42 crore in the same quarter of the previous year. Meanwhile, profit from city gas distribution rose 1.2 times to Rs 205.03 crore, up from Rs 93.07 crore in Q2 FY24, and profit in the liquefied petroleum gas (LPG) and liquid hydrocarbon business rose to Rs 248.9 crore, compared to a loss of Rs 16.9 crore earlier.

 

 

In the key petrochemical segment, the company recorded a profit of Rs 146 crore, as against a loss of Rs 160.9 crore in Q2 FY24. Sandeep Kumar Gupta, chairman and managing director, Gail, said the segment is expected to be reasonably profitable in FY25.

 

However, Gail's largest revenue segment—domestic natural gas marketing—saw profits fall 27 per cent to Rs 1,253.6 crore in Q2, down from Rs 1,722.08 crore in Q2 FY24.

 

Gail stated it has incurred a capital expenditure of Rs 1,885 crore during Q2, primarily on pipelines and the petrochemicals segment, bringing cumulative capital expenditure in the first six months of the financial year to Rs 3,544 crore. This is about 44 per cent of the annual capital expenditure target of Rs 8,044 crore.

 

In the past one year, Gail India shares have gained 70.2 per cent against Sensex's rise of 22 per cent.