GAIL - 3QFY2013 Result Review - Angel Broking

GAIL (CMP: Rs. 334/ TP: -/ Upside: -)

GAIL's 3QFY2013 result was above our expectations. The company's top line grew by 10.8% yoy to Rs. 12,474cr (above our estimate of Rs. 11,986cr) mainly due to higher than expected performance from Petrochemicals and Natural gas trading segment which grew by 26.1% and 10.6% yoy to Rs. 1107cr and Rs. 10118cr respectively. The company's fuel subsidy burden stood at Rs. 700cr in 3QFY2013, compared to Rs. 536cr in 3QFY2012 and Rs. 786cr in 2QFY2013.

The petrochemical and LPG segment EBIT grew by 13.4% and 93.8% yoy to Rs. 439cr and Rs. 592cr, respectively. However, natural gas trading and LPG transmission EBIT decreased 7.5% and 82.9% yoy to Rs. 299cr and Rs. 13cr, respectively. However GAIL's EBITDA improved by 16.4% yoy to Rs. 2,049cr in 3QFY2013 and EBITDA margin improved by 79bp yoy to 16.4% and therefore the company's net profit increased by 17.6% yoy to Rs. 1,284cr (above our estimate of Rs. 1,147cr).

We maintain our Neutral view on the stock.

Source : Equity Bulls

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