GAIL Q2 Results Review - Natural Gas Trading, Transmission Major Driver Of Earnings: Dolat Capital

"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..Dolat Capital Report.GAIL India Ltd.'s Ebitda of Rs 35 billion (+98% YoY, +44% QoQ), 62% above our estimates, Ebitda doubled YoY due to-natural gas trading Ebitda margins $0.74/metric million British thermal unit near record high;natural gas transmission gas cost the lowest ($0.3/mmbtu) in last four quarters, despite administered price mechanism gas allocations cut to 0.2 million metric standard cubic metre per day;transmission realised tariff was much higher of Rs 66.3/mmbtu versus integrated tariff of Rs 58.6/mmbtu (due to zonal revenue entitlement), transmission Ebitda/unit is at record high of $0.5/mmbtu.Despite softer liquefied natural gas prices and higher utilisation (79%) of the petrochem plant, petrochem reported ~Rs 0.3 billion losses at Ebitda due to weak price realisation. Net Profit of Rs 24 billion (+56% YoY, +70% QoQ), 60% above our estimates.Considering the rising gas demand in India, we expect GAIL’s transmission volume to clock 9% compound annual growth rate over FY23-FY26E. We maintain an 'Accumulate' rating with a revised target price of Rs 133 (versus earlier Rs 130)..Click on the attachment to read the full report:.GAIL Q2 Results Review - Strong Profits From Gas Trading Led To A Beat: Systematix.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 Q2 Results Review - Natural Gas Trading, Transmission Major Driver Of Earnings: Dolat Capital

In FY24E-25E, India’s domestic gas production is expected to rise by ~10 mmscmd.

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GAIL Q2 Results Review - Natural Gas Trading, Transmission Major Driver Of Earnings: Dolat Capital

In FY24E-25E, India’s domestic gas production is expected to rise by ~10 mmscmd.

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