Gail (India) Ltd. | Q2FY15 Result Update | Net profit was boosted by nil subsidy burden, however operational performance was muted, change our rating from BUY to Hold:: IndiaNivesh

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Net profit was boosted by nil subsidy burden, however
operational performance was muted, change our rating from
BUY to HOLD
 GAIL reported Q2 FY15 Pat number above our expectation led by nil subsidy
burden (vs our expectation of Rs. 3.2 bn) in LPG and liquid hydrocarbon
segment. Net profit stood at Rs 13.02 bn vs our expectation of Rs 9.4 bn. Top
line increased by 1% YoY and 5% QoQ to Rs. 141.2 bn, in line with our estimates
of Rs 141.13 bn driven by higher than expected revenue from LPG & Liquid
Hydrocarbon and petchem business offset by lower natural gas transmission
and trading business.
 Natural gas transmission revenue decreased by 28% YoY due to lower volume
(stood at 91.18MMSCMD against 95.21 MMSCMD in Q2FY14) and cut in tariff
by PNGRB for various pipeline networks (effective from November 20, 2008)
the company has derecognized the revenue by an amount of Rs 1.92 bn during
the quarter.
 Natural gas trading revenue decreased by 5% YoY due to lower volume (Natural
Gas trading volume was down by 13.9% YoY to 68.95 MMSCMD).
LINK
http://www.indianivesh.in/Admin/Upload/635506023745633750_GAIL_Q2FY15%20Result%20Update.pdf