GAIL - Q4 FY21 earnings update - YES Securities

- GAIL's 4QFY21 reported operating profit at Rs 25.6bn stood inline with our (Rs 24.5bn) and street (Rs 26bn) estimates. The PAT Rs 19bn, stood slightly ahead on account of higher other income.

Key Highlights

- 4QFY21 Profitability: Operating Profit and PAT at Rs 25.6bn (+3.5% YoY; +33.6% QoQ) and Rs 19.1bn (-35% YoY; +28% QoQ). Sequential improvement on stronger Petchem and Gas trading segment even as gas transmission stood marginally weaker.

- FY21 Profitability: Ebitda & PAT at Rs 64.5bn (-25% YoY) and Rs 48.9bn (-26% YoY)

- NG Transmission: Gas transmission volume stood QoQ marginally weaker at 109.8mmscmd (3Q: 110.3mmscmd), resulting in average gas transmission volume of 104.2mmscmd for FY21 (FY20: 108.4mmscmd)

- NG Trading Segment: NG trading volume stood QoQ weaker at 91.4mmscmd (3Q: 95.6mmscmd). The average for FY21 stood at 89.2mmscmd (FY20: 96.3mmscmd). The NG segment profitability turned black after consecutive losses in previous three quarter, with EBIT at Rs 2.8bn (USD 0.13/mmbtu)

- Petrochemical: Petchem, sales (234TMT) and profitability (Rs 6.1bn) improved QoQ and YoY on account of 35% YoY & 13% QoQ higher realizations at Rs 94.8/kg

- LPG-LHC Segment: Segment profitability improved 68% YoY, despite 20% QOQ lower sales volume in the 4Q, on account of stronger LPG realizations.

- GAIL shall host a conference call at 11:30 am today to discuss 4QFY21 & FY21 earnings

- We have a BUY rating on GAIL with a TP of Rs 245/sh

Shares of GAIL (INDIA) LTD. was last trading in BSE at Rs.163.45 as compared to the previous close of Rs. 162.2. The total number of shares traded during the day was 1243524 in over 8198 trades.

The stock hit an intraday high of Rs. 166.05 and intraday low of 160.6. The net turnover during the day was Rs. 203082490.

Source : Equity Bulls

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