GAIL Q3 Results Preview: Net profit likely to decline 2% sequentially, margin may dip by 80 bps

GAIL Q3 FY24 Results Preview: GAIL is estimated to register a 2.3 per cent quarter-on-quarter drop in standalone net profit to Rs 2,350 crore for the October-December (Q3 FY24) period, according to Zee Business research.

GAIL is a Maharatna PSU headquartered in New Delhi. | Image: gailonline.com

GAIL Q3 FY24 Results Preview: State-run natural gas major GAIL is all set to report its financial results for the October-December period on Monday, January 29, as the domestic corporate earnings season gathers steam. Analysts expect the company's gas marketing margin to shrink though they anticipate its LPG realisations to improve sequentially.

According to Zee Business research, GAIL is estimated to report a standalone net profit of Rs 2,350 crore for the fiscal third quarter, which translates into a decline of 2.3 per cent on a quarter-on-quarter basis. The analysts peg the natural gas giant's revenue for the December quarter at Rs 32,866 crore as against Rs 31,806.8 crore for the comparable period a year ago.

Zee Business analysts expect GAIL's quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) to stand at Rs 3,338 crore, down 4.4 per cent sequentially, and its margin to come in at 10.2 per cent in a decline from 11 per cent in the July-September period.

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While GAIL's natural gas marketing segment contributes more than 82 per cent to its overall revenue, its transmission services business—comprising natural gas and LPG businesses—accounts for about 8.4 per cent.

According to brokerage Motilal Oswal Financial Services, the gas utility's gas volumes are estimated to expand 2.1 per cent sequentially to 122.8 MMSCMD, and petrochemicals sales to improve to 1,69,400 MT from 1,68,000 MT.

GAIL Q2 FY24 results

For the July-September period (Q2 FY24), GAIL registered a sequential jump of 70.3 per cent in standalone net profit to Rs 2,404.9 crore with revenue of Rs 31,822.6 crore. Its margin improved by 340 bps to 11 per cent over the April-June period.

According to Zee Business research, GAIL's net profit, revenue and margin for the fiscal second quarter were estimated at Rs 1,596 crore, Rs 33,650 crore and 7.0 per cent, respectively.

How GAIL shares have fared in the recent past

GAIL shares have rewarded investors with a return of 67 per cent in a year, sharply outperforming a gain of 21 per cent each in the Nifty50 and Nifty Oil & Gas indices.

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GAIL Q3 Results