GAIL profit may jump fourfold as lower LNG price is estimated to aid volume growth
As per analysts, growth in standalone profit is primarily driven by the lower price of liquefied natural gas (LNG).
Gas Authority of India Ltd (GAIL), the public sector undertaking company under the ownership of the Ministry of Petroleum and Natural Gas, is likely to report a jump in its profit by four times in this quarter, as per the estimates of Zee Business. GAIL's standalone profit is set to jump four-fold to Rs 980 crore in the March quarter (Q4FY23), as per Zee Business estimates. GAIL had reported Rs Rs 245.7 crore as profit in the preceding quarter.
Revenue is also likely to be up by 23.5 per cent to Rs 43,700 crore as against Rs 35,380.4 crore in the previous quarter. Apart from its standalone profit, Zee Business estimates that there will be a spike in EBITDA as well, as it may jump 6 times to Rs 1,560 crore as against Rs 261.3 crore recorded in the previous quarter.
As per analysts, growth in standalone profit is primarily driven by the lower price of liquefied natural gas (LNG). Analysts predict that the volume forecast will increase due to falling LNG prices, as there is an estimated increase in gas volume by about 3 per cent to 4 per cent and an estimated increase of 40 per cent to 50 per cent in petrochemical sales.
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