GAIL Q4 Results Review - One-Offs Mar Quarter; Robust Guidance Maintained: Motilal Oswal

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..Motilal Oswal Report.GAIL India Ltd. reported an Ebitda of Rs 36 billion in Q4 FY24, 4% below our estimate, even as profit after tax came in 19% below our estimate. The miss was due to a weakerthan-expected performance in the trading segment, a one-off depreciation related charge of Rs 1.7 billion, and lower-than-expected other income. This was partly offset by a strong performance in the petchem and LPG segments, with Ebit coming ahead of our expectations. GAIL anticipates a robust domestic gas demand, projecting gas transmission volumes to reach 132 million metric standard cubic metre per day by end-FY25 and 142 mmscmd by end-FY26. For the trading segment, management guided an Ebit of Rs 40-45 billion, while for the petchem segment, it remained hopeful of a healthy FY25 profitability amid weaker spot LNG prices. .The key takeaways from the analyst meet:the quality of guidance has significantly improved and GAIL remains on track to achieve the guided volumes and profitability in transmission and trading, the strength of improvement in petchem profitability has surprised us/street, andkey projects such as PDH-PP remain on track for completion as per timelines. .We value the core business at 13 times FY26E adjusted earnings per share of Rs 15. Adding the value of listed and unlisted investments of Rs 40, we arrive at a target price of Rs 235. Reiterate Buy..Click on the attachment to read the full report:.GAIL Q4 Results: Profit Down 22.5% On Weak Operational Performance.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 Q4 Results Review - One-Offs Mar Quarter; Robust Guidance Maintained: Motilal Oswal

Healthy trading segment profitability with Ebit guided at Rs 40-45 billion

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GAIL Q4 Results Review - One-Offs Mar Quarter; Robust Guidance Maintained: Motilal Oswal

Healthy trading segment profitability with Ebit guided at Rs 40-45 billion

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