Q3 2024 Gail (India) Ltd Earnings Call Transcript
Key Points
- GAIL (India) Ltd (BOM:532155) reported an 8% increase in gross turnover to INR34,168 crore in Q3 FY24, driven by robust performance across major business segments.
- Profit before tax increased by 18% to INR3,694 crore, attributed to higher petrochemical sales, improved gas marketing margins, and reduced input gas costs.
- Profit after tax also rose by 18% to INR2,843 crore, reflecting the same factors that boosted profit before tax.
- The company received higher dividends during the quarter, amounting to INR403 crore compared to INR270 crore in Q2 FY24.
- GAIL (India) Ltd (BOM:532155) surpassed its gas marketing margin guidance, earning INR4,300 crore in the first nine months of FY24, and expects to exceed INR5,500 crore by the end of the financial year.
- Despite the quarterly improvements, GAIL (India) Ltd (BOM:532155) reported a 12% decrease in turnover for the nine-month period ending December 31, 2023, compared to the same period last year, primarily due to lower gas prices.
- The company's natural gas transmission volume saw only a marginal increase, with average capacity utilization at approximately 58%, indicating potential underutilization of infrastructure.
- The liquid hydrocarbon production capacity utilization was relatively low at 69%, suggesting inefficiencies in this segment.
- The company faces challenges in maintaining consistent profitability in its petrochemical segment, with breakeven levels being a target rather than a certainty.
- GAIL (India) Ltd (BOM:532155) has significant capital expenditures planned, including INR17,000 crore for FY25, which could strain financial resources and impact overall return on capital employed.
Ladies and gentlemen, good day, and welcome to Q3 FY24 earnings conference call of GAIL (India) Limited hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Probal Sen from ICICI Securities. Thank you, and over to you, sir.
Thank you, [Aditya] Thanks, everyone, for taking the time out on back-to-back calls to attend The GAIL's post Q3 FY24 results call. We have with us from the management, Shri Rakesh Kumar Jain, the CFO of the company, along with other members of the senior management of GAIL. So without further ado, I'll hand over to the management for their opening remarks and then we can get into the Q&A. Sir, over to you.
()- -
Thank you, Probal and very good afternoon to all of you. I have with me my colleagues from various
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
