X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
GAIL: Better Prospects Ahead - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

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

GAIL: Better Prospects Ahead
May 31, 2016

GAIL India (Ltd) has announced results for the quarter ended March 2016. The company has reported 18.3% year on year (YoY) decline in sales and 50.8% YoY growth in the bottom-line for the quarter. Here is a brief summary of the results.

Performance summary
  • The company registered a decline of 18.3% YoY in the topline during the quarter.
  • The operating profits (excluding other income) for the quarter registered a decline of 22.9% YoY with operating profit margins at 9.6%, up from 4.3% in 4QFY15.
  • The net income for the quarter grew 50.8% YoY, with margins at 6.6%, as compared to 3.6% in 4QFY15.
  • The consolidated revenues and net profit for the year declined 9.8% YoY and 28.7% YoY respectively.
  • The company has not shared under recovery burden on LPG this quarter and in FY16. The subsidy burden was nil for 4QFY15 (Rs 10 bn for FY15).
  • GAIL has announced a final dividend of Rs 3 per share (subject to shareholders' approval). Total dividend for the year stands at Rs 5.5, amounting to a dividend yield of 1.4% at current stock price of Rs 384.

    Financial Summary
    (Rs m) 4QFY15 4QFY16 YoY ch.(%) FY15 FY16 YoY ch.(%)
    Net Sales 142,354 116,272 -18.3% 605,147 545,720 -9.8%
    Other operating income 352 1,052 198.7% 1,892 3,157 66.8%
    Expenditure 136,272 105,087 -22.9% 550,535 497,927 -9.6%
    Operating profit (EBDITA) 6,082 11,185 83.9% 54,613 47,792 -12.5%
    EBDITA margin (%) 4.3% 9.6% 9.0% 8.8%
    Other income 2,593 2,205 -15.0% 8,634 8,291 -4.0%
    Interest (net) 914 1,546 69.1% 6,518 9,809 50.5%
    Depreciation 2,528 3,497 38.3% 14,326 18509 29.2%
    Exceptional items 629
    Profit before tax 5,585 9,399 68.3% 44,924 30,922 -31.2%
    Pretax margin (%) 3.9% 8.1% 7.4% 5.7%
    Tax 477 1,699 255.8% 14,209 10,441 -26.5%
    Effective tax rate (%) 8.5% 18.1% 31.6% 33.8%
    Profit after tax/(loss) 5,107 7,700 50.8% 30,714 20,481 -33.3%
    Share of profit/ (loss) of associates 881 1,083 22.9%
    Minority interest -5 -951
    Net profit for the group 31,601 22,516 -28.7%
    Net profit margin (%) 3.6% 6.6% 5.1% 3.8%
    No. of shares (m) 1,268
    Diluted earnings per share (Rs)* 17.8
    Price to earnings ratio (x)* 20.7

    *On a trailing 12-month basis

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the investor could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the investor could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the investor should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the investor could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

GAIL SHARE PRICE


Aug 18, 2017 (Close)

TRACK GAIL

GAIL - CONOCOPHILLIPS COMPARISON

Compare Company With Charts

COMPARE GAIL WITH

MARKET STATS