GAIL – Q2 FY20 (Unaudited – Cons.)
Share price – 127
Total revenue from operations at 18,249 Cr
19,352 Cr (-5.72%) YoY | 18,481 Cr (-1.22%) QoQ
Half year revenue: 36,731 Cr Vs. 36,926 Cr (-0.52%)
Net Profit of 1,168 Cr
1,789 Cr (-34.73%) YoY 1,503 (-22.17%) QoQ
Half year ending Net Profit: 2,671 Cr Vs. 3,232 Cr (-17.32%)
EPS (in Rs.) 2.59
3.96 YoY | 3.33 QoQ
Half Year ending EPS: 5.92 Vs. 7.16
View: The result is below expectations and down. Although YoY revenue marginally down but profit significantly down in YoY. QoQ also profit and revenue both down.
Business Highlights & Updates:
Q2FY20 EBITDA is around INR 1890 Cr Vs. 2925 Cr in Q2FY20. H1FY20 EBITDA is around INR 4,407 Cr Vs. 5,382 Cr in H1FY19.
GAIL has basically diversified company with the major topline of Natural Gas – 6%, Natural Gas marketing -74% Petrochemicals -7%, City Gas – 6% and others – 9%.
YoY topline growth for Natural Gas down by more than 7%, Natural Gas marketing down by 7%, Petrochemicals down by 8%, City Gas down by 3%. So all segment topline growth declined.
YoY bottom-line growth for Natural Gas declined by 10%, Natural Gas marketing declined by 70% (significantly down – Negative impact), Petrochemicals down by 150% (Also loss-making in this quarter), City Gas up by 71% (Very small portion around 53 Cr profit).
ROE and ROCE are around 13.7% and 22% respectively and book value per share is around 192 and share is currently trading at 0.6x of its book value. The company is currently trading at annualized PE of around 13 which is fair as per Industry benchmark. Promoter (Govt of India) is holding around 52.6% in the company, FIIs and mutual funds hold around 18.8% and 9.1% in the company. The good thing is the company has very small debt and current debt-equity ratio is around 0.03:1 which is very fair. The company has a strong net worth of around INR 40,925 Cr.
Share price high 189 and now 127 almost 32% from their peak due to YoY and QoQ performance continuously declined and also effecting operation efficiency and also news floating around for transferring of their main business. Gail Limited is the Government of India undertaking company. Gail is the largest state-owned natural gas processing and distribution company in India. It is headquartered in New Delhi. It is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas.
Current news also indicates that Govt wants to exit the oil & gas business.
Share is in the bearish zone and continuously performance impacted. Support is INR 115.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take different views and opinions. Free stock tips
Share price – 127
Total revenue from operations at 18,249 Cr
19,352 Cr (-5.72%) YoY | 18,481 Cr (-1.22%) QoQ
Half year revenue: 36,731 Cr Vs. 36,926 Cr (-0.52%)
Net Profit of 1,168 Cr
1,789 Cr (-34.73%) YoY 1,503 (-22.17%) QoQ
Half year ending Net Profit: 2,671 Cr Vs. 3,232 Cr (-17.32%)
EPS (in Rs.) 2.59
3.96 YoY | 3.33 QoQ
Half Year ending EPS: 5.92 Vs. 7.16
View: The result is below expectations and down. Although YoY revenue marginally down but profit significantly down in YoY. QoQ also profit and revenue both down.
Business Highlights & Updates:
Q2FY20 EBITDA is around INR 1890 Cr Vs. 2925 Cr in Q2FY20. H1FY20 EBITDA is around INR 4,407 Cr Vs. 5,382 Cr in H1FY19.
GAIL has basically diversified company with the major topline of Natural Gas – 6%, Natural Gas marketing -74% Petrochemicals -7%, City Gas – 6% and others – 9%.
YoY topline growth for Natural Gas down by more than 7%, Natural Gas marketing down by 7%, Petrochemicals down by 8%, City Gas down by 3%. So all segment topline growth declined.
YoY bottom-line growth for Natural Gas declined by 10%, Natural Gas marketing declined by 70% (significantly down – Negative impact), Petrochemicals down by 150% (Also loss-making in this quarter), City Gas up by 71% (Very small portion around 53 Cr profit).
ROE and ROCE are around 13.7% and 22% respectively and book value per share is around 192 and share is currently trading at 0.6x of its book value. The company is currently trading at annualized PE of around 13 which is fair as per Industry benchmark. Promoter (Govt of India) is holding around 52.6% in the company, FIIs and mutual funds hold around 18.8% and 9.1% in the company. The good thing is the company has very small debt and current debt-equity ratio is around 0.03:1 which is very fair. The company has a strong net worth of around INR 40,925 Cr.
Share price high 189 and now 127 almost 32% from their peak due to YoY and QoQ performance continuously declined and also effecting operation efficiency and also news floating around for transferring of their main business. Gail Limited is the Government of India undertaking company. Gail is the largest state-owned natural gas processing and distribution company in India. It is headquartered in New Delhi. It is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas.
Current news also indicates that Govt wants to exit the oil & gas business.
Share is in the bearish zone and continuously performance impacted. Support is INR 115.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take different views and opinions. Free stock tips
0 comments:
Post a Comment