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.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Diluted Earnings per share*
P / E Ratio
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.
GAIL (India) Ltd has announced results for the quarter ended June 2016. The company has reported 14.6 % year on year (YoY) decline in sales, while bottom-line grew 244% YoY. Here is a brief summary of the results.
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