- 04 Feb 2022
- ICICIdirect Research
Gail gas trading EBIT surges to Rs.1749.7 croreGAIL - 105 Change: -0.30 (-0.28 %)
News: Gail's revenue grew 66.7% YoY to Rs.25769.8 crore in Q3FY22. Gas transmission volumes were up 3.6% YoY to 114.3 mmscmd and gas trading volumes stood at 96.6 mmscmd, up 1% YoY. Gas transmission, gas trading and petchem segments reported higher than expected profitability. Subsequently, EBITDA was at Rs.4228.1 crore, up 120.3% YoY. Reported PAT stood at Rs.3288 crore, up 121.1% YoY.
Views: Gail's gas transmission volumes during Q3FY22 improved YoY and are expected to report steady growth going ahead. Petchem segment's performance was better than anticipated mainly due to lower costs. We expect reasonable profits from petchem segment in the coming quarters. As spot LNG prices continue to remain higher, we expect gas trading segment to report healthy profits in near term. Higher earnings visibility for gas trading segment along with steadily growing gas transmission and CGD business augur well for the company.