GAIL India Q2 Results Review - Outlook Remains Positive; Upgrade To Buy: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.GAIL India Ltd.’s operational performance for Q2 FY25 aligns with our estimates while lower depreciation, higher other income, and lower effective tax rate led to a 19% beat in net profit. Ebitda experienced a 17% sequential decline (+7% YoY) to Rs 37.5 billion, primarily driven by a 34%/8% decrease in trading and transmission profit, which was partially offset by a substantial 126%/4% sequential growth in Petrochem and LHC profits. Gas transmission volumes remained relatively stable QoQ at 130.6 million metric standard cubic metre per day (+8.6% YoY), while the effective tariff decreased by 2.2% to Rs 2.13/scm. Ebitda/scm witnessed a 20% decline to Rs 1.08/scm due to elevated spot LNG prices. Gas trading volumes contracted by 3% QoQ to 96.6mmscmd, owing to reduced offtake from the power sector. Segmental Ebitda plummeted by 48% QoQ (-42% YoY) to $0.3/metric million British thermal unit, attributable to a negative spread between HH and Brent. Petrochemical Utilization levels surged to 115% as sales volumes expanded by 34% QoQ (+35% YoY) to 226kt. Favorable gas mix and improved margins contributed to a 127% QoQ increase in segmental Ebitda to Rs 2.8 billion, better than estimates..Click on the attachment to read the full report:.GAIL (India) Q2 Results: Profit Down 16%, Meets Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

GAIL India Q2 Results Review - Outlook Remains Positive; Upgrade To Buy: Systematix

The stock has corrected 16% in last three months. Hence, the brokerage upgrades the stock to 'Buy' from earlier Hold.

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GAIL India Q2 Results Review - Outlook Remains Positive; Upgrade To Buy: Systematix

The stock has corrected 16% in last three months. Hence, the brokerage upgrades the stock to 'Buy' from earlier Hold.

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