PL First Cut - GAIL Q3FY24 Results - Operating profit improves QoQ

PL First Cut – Swarnendu Bhushan – Co-Head of Research, Prabhudas Lilladher Pvt Ltd

GAIL Q3FY24 Results First Cut: Operating profit improves QoQ

(CMP: Rs173 | MCap: Rs1,135bn | Rating- Hold)

· GAIL reported better than estimated result with an EBITDA of Rs 38bn (up 9%QoQ, PLe: Rs 34bn) while PAT came in at Rs 28bn (up 18% QoQ, PLe: Rs24 bn)

· Volume data is awaited

· Gas transmission EBIT at Rs 12.2 bn was down 6% QoQ

· Gas trading EBIT at Rs 18.8 bn, was up 5% QoQ

· Petchem EBIT grew to Rs0.6 bn (vs EBIT loss of Rs 1.6bn in Q2FY24)

· The company declared an interim dividend of Rs5.5/share

The stock is trading at 14/13.8x FY26 EPS.