Gas Authority of India Limited, also known as GAIL, is a state-owned natural gas processing, transmission, and marketing company in India. Its operations cover a variety of segments such as liquid hydrocarbon, LPG production and transmission, and petrochemicals.
The market cap of GAIL, as of March 2018, is more than Rs.72,000 crore.
Company’s Wealth and Recent Performance
GAIL Q1 FY 2018-19 Results (H2)
- The company’s net profit rose by 23% at Rs.1,259 crore attributed to the robust revenue income and operating performance. In the previous quarter, GAIL India had reported a net profit of Rs.1,021 crore.
- The revenue inclined by 12% at Rs.17,299 crore as against Rs.15,431 crore during the previous quarter, while it grew by 51% y-o-y.
- The EBITDA for the said quarter increased by 18.1% y-o-y to Rs.2,243.62 crore compared to Rs.1,899.35 crore reported in Q1 FY18, while the EBITDA margin dropped 368 bps y-o-y to 13%.
- The rise in PAT was supported by better physical performance in every segment where its natural gas marketing and transmission volumes inclined by 24% and 7% respectively.
- Its petrochemical sales grew by 27%, while its liquid hydrocarbon sales inclined by 7% and the LPG transmission increased by 1%.
GAIL FY 2017-18 Annual Report (H2)
- GAIL posted nearly 50% rise in its total income to stand at Rs.4,609.65 crore as against Rs.2,796.69 crore reported last fiscal.
- Its PBT stood at Rs.118.94 crore compared to Rs.100.19 crore reported during the 2016-17 financial year, while its PAT stood at Rs.76.04 crore as against Rs.65.78 crore for the year ended 31 March 2017.
GAIL Q4 FY 2017-18 Results (H2)
- The oil and gas company reported a significant rise in its net profit at Rs.1,021 crore for the quarter ending 31 March 2018 compared to Rs.260 crore reported in the previous quarter.
- The company’s sales inclined by 12.84% to Rs.15,430.69 crore as against Rs.13,674.09 crore reported during the corresponding quarter of last fiscal.
- The EBITDA for the said quarter stood at Rs.1,695 crore as compared to Rs.1,555 crore during the same period last fiscal.
- The revenue stood at Rs.15,430.69 crore during the said quarter, up by 12.9% y-o-y as compared to Rs.13,674.09 crore reported in Q4 FY17.
- GAIL’s revenue from operations for the December quarter increased by 17% to Rs.14,414.34 crore from Rs.12,409.65 crore in the corresponding quarter last year. At the same time, its expenses for the quarter also grew by 10% y-o-y.
- Considering the segment-wise split of this turnover, a significant proportion of it comes from gas marketing operations, while the remaining comes from other operations like natural gas transmission, petrochemicals, and liquid hydrocarbons.
- As for the profit after tax for the Q3 FY18, it was reported to be at Rs.1,262.22 crore, in comparison to Rs.982.92 crore in the Q3 FY17. These numbers also account for mark-to-market losses of Rs.216.29 crore.
- Even though there has been an increase of 28.40% in PAT over the same quarter last year, there has been a slight decrease in the same over the September quarter. The PAT in the previous quarter was reported to be at Rs.1,309.63 crore.
- Its net worth of December 31, 2017, is Rs.35,678 crore with an outstanding loan of Rs.2,491 crore.
GAIL Stock Trends in 2018
- The opening price of GAIL stock on January 1, 2018, on NSE and BSE, was Rs.502.80 and Rs.500.25 respectively. An interim dividend of 76.5% was announced later in the month but by that point in time, the shares had lost more than Rs.40 in value. However, following the dividend announcement, the share price recovered slightly. The closing price at the end of the month was Rs.478.30 on NSE.
- The month of February was tumultuous for the markets and GAIL shares were not immune from this. By the end of the first week, the shares had lost its recent gains and were being traded at around Rs.464 on NSE and BSE. The downward trend continued through the last week of the month as well, with the closing price on February 28 being Rs.457.05.
- On the 1st of March, the scrip lost 3 points to end the day at Rs.340.69 and dropped further by more than 20 points to stand at Rs.318.86 on the 26th before recovering to end the month at Rs.328.55.
- When the market opened for trading on the 2nd April, the stock lost 4 points to end the day at Rs.324.80 and remained stable over the course of the month to end at Rs.325.10.
- GAIL stock price on the 2nd of April stood at Rs.323.70 and rose sharply by nearly 20 points to stand at Rs.343.80; however, it declined significantly to stand at Rs.309.50 on the 24th but inclined strongly to end the month at Rs.350.90.
- It dropped about 10 points on the 1st of June to stand at Rs.341.35 and remained steady before declining to Rs.319.55 on the 28th only to recover and end the month at Rs.340.25.
- In July, the stock of GAIL began the month at Rs.341.10 and inclined considerably to end the month on a high at Rs.375.15.
- The scrip continued its upward trend in August with the opening price of Rs.375.35 and remained unperturbed to end the month at Rs.372.20.
GAIL Stock Trends in 2016 and 2017
- GAIL share price at the start of 2016 was around Rs.277 on NSE and BSE. The price remained at this wavelength up until early February, when GAIL stocks started a downward run. The announcement of an interim dividend of 25% did not do much to boost investors confidence. Nonetheless, by the end of March, the stocks managed to recover their recent losses and finished trading at Rs.267.30 on March 31.
- Through most of April and May, GAIL share price remained between Rs.250-280 without taking any major nosedives. In June, the stocks inched closer to Rs.290 driven by positive global cues and company updates, without incurring any sharp falls in the price. The closing price at the end of June was Rs.288.86.
- For the most of July, the shares changed hands at Rs.280-298, while in August, the price went down and entered the Rs.270 territory. In the final days of the month, GAIL stocks staged an impressive recovery and crossed Rs.290 again.
- A final dividend of 30% was announced in September 2016 and during the same time, the stock price crossed Rs.300. However, it failed to stay there for long and as a result, the price was back in the Rs.280 territory again. The stocks commenced another upward trend in October and this time, the share price crossed Rs.300. GAIL shares changed hands at Rs.310-335 up until demonetisation in November, when the stock price went down to touch Rs.300. However, the prices recovered in December and the share price at the end of the month was Rs.329.40 on NSE.
- The opening price of GAIL shares at the start of 2017 was around Rs.326 on NSE and BSE. The price increased steadily over the course of the month and the announcement of an interim dividend of 85% in early February further accelerated this rise. In March, bonus shares were announced in 3:1 ratio. The closing price at the end of March was Rs.376.95.
- Stocks commenced another upward run in April and this time, the rally lasted till early May. GAIL share price crossed Rs.400 and touched a high of Rs.433 during intraday trading. However, the share price took a dive thereafter, but managed to recover by the end of the month. The month of June was a shaky one for the markets as GAIL shares entered Rs.300 territory again. The closing price on June 30, 2017 was Rs.361.45.
- Through July and most of August, GAIL stocks were traded at around Rs.370-380. A final dividend of 27% was announced at the end of August, which was soon followed by a spike in share price in September. The share price crossed Rs.400 again and the closing price at the end of the month was Rs.419.05 on NSE.
- Through the months of October to December, the share price rose incrementally. In October, GAIL share price crossed Rs.470 but failed to stabilise at that point. The price went down for a brief period after that but in November, it found some stability at values above Rs.450. The stock price rose sharply in December and the closing price at the end of the year was Rs.499.65.
Should you invest in GAIL?
- GAIL, being a state-owned natural gas processing and distribution company, has played an instrumental role in developing and boosting the natural gas market in India. It is a Maharatna company that is responsible for more than 50% of natural gas sold in the country. It has also established several key pipelines over the years to enhance its gas distribution network and is presently working on Jagdishpur-Haldia and Bokaro-Dhamra pipeline to boost industrial development in the North-Eastern belt.
- GAIL has been around the block for more than 30 years and has led the revolution for the natural gas industry in India. The company is fundamentally strong and has been highly consistent in terms of financial performance. In its sector (Oil, Drilling and Exploration), GAIL is ranked second when it comes to market cap and net profit, trailing right behind ONGC. As the Government of India shifts its focus to natural gas, GAIL is one of the few players that stands to benefit from it.
- The company's debt-equity ratio as of Q3 FY18 is 0.07, implying that the company is in very little debt. This coupled with GAIL’s strong financial performance makes this a good stock to invest in the long-term. However, it is advisable to consult your own financial planner and perform your own research before investing.
GAIL, formerly known as Gas Authority of India Limited, is a government-owned natural gas processing and distribution company in India. Apart from being one of the largest gas processing companies in the country, GAIL also operates in other segments like liquid hydrocarbon, liquefied petroleum gas, petrochemical, exploration and production, et cetera.
History of the Company
GAIL India was incorporated in August 1984 as a Central Public Sector Undertaking. The company was formed under the purview of Ministry of Petroleum & Natural Gas and was first tasked with the responsibility of constructing, operating, and maintaining the iconic Hazira-Vijaipur-Jagdishpur (HVJ) pipeline. GAIL commissioned the HVJ pipeline in 1991, which at the time, was one of the largest cross-country natural gas pipeline projects in the world. Furthermore, this pipeline project also laid the foundation for the development of the natural gas market in India. The early 1990s also GAIL construct three LPG plants and acquire pipelines to expand its distribution network.
The company went public in 1996 which it soon followed with commencing gas distribution operations in New Delhi. At the start of 2000, GAIL established its exploration and production department to tap into new gas reserves. As the years went by, the natural gas conglomerate built a large network of trunk pipelines, the total length of which is more than 10,700 kilometres. Presently, GAIL has a market share of more than 70% in gas transmission and marketing.
Mr. B. C. Tripathi - Chairman and Managing Director
Mr. Tripathi has been a part of GAIL since 1984, when the company was in its early stages. A graduate from NIT Allahabad in Mechanical Engineering, Mr. Tripathi started his career with the Oil and Natural Gas Corporation. He has been with GAIL right from the start and has served in various capacities over the years in segments comprising marketing, customer relationship management, project management, et cetera. He has played an important role in the execution of GAIL’s several important pipeline projects like the HVJ project, in addition to its most recent venture - the Dahej-Dabhol Pipeline. He is also the recipient of the Silver Medal for Excellence in Project Management in Mega Project Category.
Dr. Ashutosh Karnatak - Director (Projects)
Dr. Karnatak obtained his B.Tech in Electrical Engineering from the HBTI, Kanpur and followed it with an M.Tech from IIT Delhi, an MBA in Finance and a Ph.D. from the University of Petroleum & Energy Studies, Dehradun. Before being appointed as the director of projects, he served as the Executive Director (Projects) at GAIL. He has been with the company for more than 30 years and during this time, he has managed several infrastructure projects for the company in addition to leading the way for many wind and solar energy projects. He has also published books on oil and gas sector, self-development, and project management.
GAIL Listings in NSE, BSE, and Indices
GAIL equity shares are available for trading on the National Stock Exchange Limited and Bombay Stock Exchange Limited. The codes for the same are mentioned below:
- NSE - GAILEQ
- BSE - 532155
- ISIN - INE129A01019
- Sector - Oil Drilling & Exploration
GAIL global depository receipts (GDRs) are also available for trading on the London Stock Exchange, the code for which is - GAID LI GAILY US.
GAIL also comprises several stock market indices, the most notable of which is the NIFTY 50. In addition to this, it also forms a part of the following indices:
- NIFTY 200
- NIFTY 500
- S&P BSE 100
- S&P BSE 500
- S&P BSE SENSEX 50
- S&P BSE India Infrastructure
GAIL Corporate Office
GAIL (India) Limited
GAIL Bhawan, 16 Bhikaji Cama Place
R K Puram, New Delhi - 110066
Contact number – 011-26172580
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