GAIL Q3 results: LPG, gas transmission segments witness strong traction

GAIL’s December 2017 quarter operating performance may have disappointed, but strong revenue growth and net profits being marginally lower than expectations, coupled with good prospects, offer some comfort.

Led by strong volume growth across segments, net sales grew 19 per cent year-on-year (y-o-y) to Rs 144.14 billion, and were ahead of Bloomberg’s consensus estimates of Rs 137.5 billion. 

Most segments, including gas transmission, marketing, LPG, and hydrocarbons, registered robust volume growth. The gas marketing segment, which contributes about 70 per cent to GAIL’s revenue, grew 18 per cent, and drove its overall performance.

Operating profit grew 15.8 per cent y-o-y