GAIL announced Q1 FY24 results; See how much Net Profit clocked this quarter

GAIL announced Q1 FY24 results; See how much Net Profit clocked this quarter

On Monday, GAIL (India) announced a 134% surge in its standalone net profit for Q1FY24 reaching Rs 1,412 crore, a significant leap from Rs 604 crore in Q4FY23. However, a year-on-year comparison reveals a 52% reduction from Rs 2,915 crore in Q1FY23.

Operating revenue declined both on a quarterly and annual basis, standing at Rs 32,227 crore. In the preceding quarter, the company had declared revenue of Rs 32,858 crore, and in the June 2022 quarter, it was Rs 37,572 crore, as per the company's statement.

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Standalone EBITDA for the initial quarter of the ongoing fiscal year was at Rs 2,432 crore, a staggering 700% increase from an EBITDA of Rs 307 crore in Q4FY23. EBITDA margins also saw a significant improvement, rising 7.6% from 0.9% on a quarterly basis.

Following the release of these results, GAIL India's shares saw an approximately 5% increase to Rs 122.85 on Monday, reaching its 52-week peak. The gas transmission company now boasts a total market capitalization approaching Rs 80,000 crore, with the scrip closing at Rs 117.55 on Friday.

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UBS, a foreign brokerage firm, upgraded the stock to 'buy' from 'sell' and increased its target price for the stock from Rs 80 to Rs 150. UBS noted that GAIL shares are trading at a 50% discount to their historical averages, and the market has yet to fully recognize the upside of the realized tariffs, the potential of India's growing gas demand, and GAIL's pipeline expansion.

UBS believes these elements could lead to a series of margin-driven consensus earnings upgrades for the stock. The stock has seen an increase of 4.50%, hitting a high of Rs 122.85. According to UBS, its estimated standalone EBITDA for FY24-26 is between 21-29%, surpassing consensus expectations.

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