GAIL's profits increase by whopping 215 per cent; stock trades flat

State gas utility major, GAIL India has reported its Q1FY17 numbers after market hours on Wednesday, September 07. The results were primarily supported by good performance by company’s petrochemical business and funds from Mahanagar Gas IPO.

GAIL’s Q1FY17 revenues have come in at Rs. 10851.8 crore as against Rs 12565.29 crore, representing a decline of 13.64 per cent Y-O-Y. Revenue figures have come in low due to depressed Oil & Gas prices across the globe. Q1FY17's EBITDA has increased by 52.63 per cent to Rs 1593.28 crore as compared to Rs 1043.88 crore in the year ago period. GAIL was successfully able to augment its margin by 637 basis points, i.e. 14.68 per cent. Margin expansion was aided by a decrease in purchase of traded goods, which makes a significant portion of its cost.

Company’s bottom-line has increased to Rs 1335.18 crore, which is up by a massive 215 per cent on a yearly basis. A huge spike in the profits was seen due to increase in the other income element of the P&L statement, which was boosted by funds received from the Mahanagar Gas IPO.

Segment wise performance has seen petrochemical business turnaround in this quarter.

However, GAIL India's shares were trading flat on the bourses at Rs 392 before touching an intra-day high of Rs 407.