GAIL India Q4 Results Review - Higher Gas Usage Cost Weighs On Earnings: Yes Securities

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.GAIL India Ltd. reported Q4 FY23, significantly below estimates, with adjusted operating profit at Rs 3.1 billion (-92% YoY; -77% QoQ), primarily on weaker than estimated earnings in gas transmission and petrochemical segment. Gas transmission segment reported a pre-tax loss of Rs 164 million due to one-time provision of Rs 1.10 related to rerouting of TN section of Kochi-Koottanad-Bangalore-Mangalore Gas Pipeline and due to higher system use gas expense as administered pricing mechanism allocation for SUG got incrementally reduced by 0.5 million metric standard cubic metre per day during the quarter. GAIL’s p/l tariff was recently (March 2023) revised upwards to Rs 58.6/metric million British thermal unit, however given notified tariff factors for a lower price (than the prevailing prices) for APM and high pressure-high temperature gas to be used as SUG, GAIL is of the view that tariffs need further upward revision to factor for the same. In light of the revised Natural Gas Pipeline tariff regulations (November 2022), the cost of SUG as fuel is recoverable as operating cost and therefore, we foresee a high probability for revision in pipeline tariff to adjust for the same. Going ahead, with moderation in domestic gas and LNG prices, the business for GAIL appear to be improving across segments. .Click on the attachment to read the full report:.GAIL India Q4 Results: Profit Drops On Higher Operational Costs; Margin Falls.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

GAIL India Q4 Results Review - Higher Gas Usage Cost Weighs On Earnings: Yes Securities

Going ahead, with moderation in domestic gas and LNG prices, the business for GAIL appear to be improving across segments.

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