GAIL India Q3 Results Review - Super Normal Gas Trading Margins, Petrochem Ebitda Positive: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Superb performance by GAIL India Ltd. with positive surprise on the petrochemical and gas trading. Ebitda of Rs 38.2 billion (+1,363% YoY, +9% QoQ), much ahead of our as well as street estimates. Ebitda growth led by-Natural gas trading Ebitda margins $0.77/metric million British thermal unit near record high; positive surprise on the petrochemical plant utilisation (more than 100%) and turned positive Ebitda after six quarters;transmission tariff was much higher of Rs 66/mmbtu versus integrated tariff of Rs 58.6/mmbtu; andNG transmission gas cost one of the lowest ($0.33/mmbtu), despite nil administered price mechanism gas allocations from December 2023.Softer LNG price plus domestic gas production on the rise are the major volume growth drivers. Transmission to volume to clock 8% compound annual growth rate over FY23-FY26E. Guidance for the gas trading Ebitda range to Rs 40-45 billion for FY25E. Considering elevated transmission tariffs and softer spot LNG to improve petrochemical profitability. Hence, we have tweaked our earnings by +25%/+17%/+18% in FY24E/FY25E/FY26E and maintain 'Accumulate' rating on the stock with upward revision in target price to Rs 205 (earlier 133)..Click on the attachment to read the full report:.GAIL India Q3 Results: Profit Up 30.8% On Higher Sales, Operating Margin.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

GAIL India Q3 Results Review - Super Normal Gas Trading Margins, Petrochem Ebitda Positive: Dolat Capital

Natural gas transmission: Volume grew 17%/1% YoY/QoQ, major volume growth drivers are CGD, fertilizer and small industries

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP