GAIL Shares Mounted Over 5% After Release of Q2 FY25 Results

GAIL (India) Limited reported a Revenue from Operations of ₹66,622 crore for the period April – September 2024, marking an increase from ₹64,050 crore in the corresponding period of the previous financial year (FY 2023-24).

The company also achieved significant growth in its profitability, with Profit Before Tax (PBT) for H1 FY25 standing at ₹7,095 crore, compared to ₹5,019 crore in H1 FY24. Profit After Tax (PAT) for the first half of FY25 reached ₹ 5,396 crore, up from ₹3,817 crore in the same period last year. This marks GAIL’s highest-ever half-yearly EBITDA, PBT, and PAT in H1 FY25.

On a Quarter-on-Quarter basis, GAIL’s Revenue from Operations stood at ₹32,931 crore in Q2 FY25, slightly lower than ₹33,692 crore in Q1 FY25. PBT for Q2 FY25 was recorded at ₹3,453 crore, compared to ₹3,642 crore in Q1 FY25. Similarly, PAT for Q2 FY25 amounted to ₹2,672 crore, down from ₹2,724 crore in Q1 FY25.

Operational Highlights

In terms of operational performance, GAIL reported a Natural Gas transmission volume of 130.63 MMSCMD in Q2 FY25, while the gas marketing volume for the same period was 96.60 MMSCMD. The company also saw increased sales in its LHC (Low Heat Content) and Polymer segments, with volumes reaching 253 TMT and 226 TMT, respectively, in Q2 FY25. These figures show a notable increase compared to 218 TMT and 169 TMT in Q1 FY25.

GAIL’s Petrochemical segment showed significant improvement in Q2 FY25, recording a PBT of ₹ 157 crore, a substantial turnaround from a loss of ₹ 42 crore in Q1 FY25. Shri Sandeep Kumar Gupta, CMD of GAIL, expressed confidence that the Petrochemical segment is expected to be reasonably profitable in FY 2024-25.

1HFY25 Consolidated Performance

On a consolidated basis, GAIL reported Revenue from Operations of ₹68,803 crore in H1 FY25, up from ₹65,898 crore in H1 FY24. The company’s consolidated PBT for the first half of FY25 stood at ₹7,583 crore, compared to ₹5,421 crore in the previous year. PAT, excluding non-controlling interest, was ₹5,876 crore in H1 FY25, compared to ₹4,236 crore in H1 FY24.

The company has also made significant investments in its capital expenditure (Capex) program. GAIL incurred a Capex of ₹1,885 crore in Q2 FY25, primarily on pipelines and petrochemical projects. This brings the cumulative Capex for H1 FY25 to ₹3,544 crore.

On November 6, 2024, GAIL shares opened at ₹200.05 and touched the day high of ₹209.40 at 09:35 AM.

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