GAIL: The juggernaut rolls on... - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

GAIL: The juggernaut rolls on...

Apr 30, 2001

For the current quarter Gas Authority of India Ltd. (GAIL) has reported a moderate increase in topline as compared to the first two quarters of the previous fiscal wherein the company reported a significant turnover growth. This could be due to its petrochemical plant in U.P stabilising operations in 3QFY00. Consequently, YoY the effect has been reduced.

(Rs m) 4QFY00 4QFY01 Change FY00 FY01 Change
Sales 23,889 25,708 7.6% 84,153 100,515 19.4%
Other Income 171 431 151.5% 1,493 1,306 -12.5%
Expenditure 19,548 19,687 0.7% 68,779 78,961 14.8%
Operating Profit (EBDIT) 4,341 6,021 38.7% 15,374 21,554 40.2%
Operating Profit Margin (%) 18.2% 23.4%   18.3% 21.4%  
Interest 383 515 34.4% 1,668 1,848 10.8%
Depreciation 1,330 1,281 -3.7% 4,886 5,161 5.6%
Profit before Tax 2,799 4,657 66.3% 10,313 15,851 53.7%
Tax 560 1,300 132.2% 1,700 4,300 153.0%
Profit after Tax/(Loss) 2,239 3,356 49.9% 8,613 11,551 34.1%
Net profit margin (%) 9.4% 13.1%   10.2% 11.5%  
No. of Shares (eoy) 846 846   846 846  
Diluted Earnings per share* 10.6 15.9   10.2 13.7  
P / E Ratio   3.3     3.8  
*(annualised)            

The operating profits have registered impressive growth. This seems to be largely driven by higher volume transport and better realisations. Consequently, the OPM has increased by 310 basis points and the company has maintained higher margins for all the quarters as compared to FY00. This could be due to greater control on operating costs in their pipeline business. Further, margins may have been positively impacted with the commissioning of the petrochemical (polymer) plant. GAIL operates a gas cracker, which involves lower operating costs as compared to naphtha crackers.

With the company completing all of its planned expenditure the depreciation charge has remained flat. Consequently, pre-tax profits have grown significantly resulting in higher tax outgo. The effective tax YoY has increased from 16.5% to 27.1% for the year ended March '01.

The company has capitalised Rs 742.6 m on account of exchange rate variations arising due to the repayment of foreign exchange debt raised for the GREP project. The statutory auditor has opined that this amount should be passed through the income statement. The matter is being referred to the Expert Advisory Committee of ICAI. Adjusting this amount in FY01 the bottomline shows a growth of 25.5% YoY with an eps of Rs 12.8.

At Rs 52 the company is trading on a multiple of 3.3x on 4QFY01 annualised earnings. For FY01, Gail is trading on a multiple of 3.8x earnings with a m cap to sales ratio of 0.4x.

Equitymaster requests your view! Post a comment on "GAIL: The juggernaut rolls on... ". Click here!

  

More Views on News

GAIL 2020-21 Annual Report Analysis (Annual Result Update)

Oct 19, 2021 | Updated on Oct 19, 2021

Here's an analysis of the annual report of GAIL for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of GAIL. Also includes updates on the valuation of GAIL.

GAIL Announces Quarterly Results (1QFY22); Net Profit Up 796.2% (Quarterly Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

For the quarter ended June 2021, GAIL has posted a net profit of Rs 17 bn (up 796.2% YoY). Sales on the other hand came in at Rs 176 bn (up 44.4% YoY). Read on for a complete analysis of GAIL's quarterly results.

GAIL Misses Earnings Estimates. Company Ditches Plan to Split (Views On News)

Jun 10, 2021

GAIL's earnings and proposal to monetise pipelines through InvIT route, puts stock in focus.

5 Green Energy Stocks to Watch as India Readies for a Revolution (Views On News)

Oct 13, 2021

The excitement around green energy stocks has opened up a huge contrarian opportunity in the traditional energy space.

Top Performing PSU Stocks over the Past One Year (Views On News)

Oct 1, 2021

After a decade of underperformance, PSU stocks have woken up. Here are the best performing PSUs of past twelve months.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

GAIL SHARE PRICE


Dec 3, 2021 (Close)

TRACK GAIL

GAIL - REFEX INDUSTRIES COMPARISON

COMPARE GAIL WITH

MARKET STATS