GAIL Q1 results preview: Net profit likely to more than double sequentially to Rs 1,460 crore

State-run natural gas major GAIL is scheduled to report its financial results for the April-June period on Monday, July 31. Analysts expect GAIL to stage a strong quarterly performance driven by robust demand and easing LNG prices. 

According to Zee Business research, GAIL is estimated to report a standalone net profit of Rs 1,460 crore for the first quarter of the current financial year, translating to a 2.4 times increase on a sequential basis. The analysts expect GAIL — a natural gas processing and distribution firm — to register revenue of Rs 31,330 crore for the three-month period. 

GAIL is estimated to report Rs 2,190 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA) for the June quarter, as against Rs 307.2 crore for the previous three months, according to the research. 

Zee Business analysts peg the company's margin — a key measure of profitability — for the April-June period at seven per cent. They expect the company's petrochemicals business to return to profitability after three back-to-back quarters of losses, with 50-60 per cent sequential growth in sales. 

How GAIL performed in Q4

For the quarter ended March 2023, GAIL reported a standalone net profit of Rs 603.5 crore as against a standalone net profit of Rs 245.7 crore for the previous three months. 

Its revenue, however, declined 7.1 per cent on a quarter-on-quarter basis to Rs 32,858.2 crore for the January-March period, according to a regulatory filing. 

The company's margin came in at 0.9 per cent for the final quarter of the financial year 2022-23. 

GAIL shares 

GAIL shares barely moved in the June quarter. The stock finished the three-month period with a decline of 0.2 per cent, sharply underperforming a 10.5 per cent rise in the benchmark Nifty index. 

As of July 27, GAIL shares had lost 20.6 per cent of their value in the past year in contrast to a 16.1 per cent gain in the blue-chip index.

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