GAIL (India) spurted 3.21% to Rs 104.60, extending its gains for third consecutive trading session.
The stock has surged 6.4% in three trading days from its previous closing low of Rs 98.3 on 22 June 2020. The stock rose 2.12% in a single trading session on Wednesday (24 June), following the announcement of Q4 results.GAIL (India)'s consolidated net profit surged 216% to Rs 4,813.88 crore in Q4 FY20 from Rs 1,523.73 crore in Q4 FY19 driven by tax write-back. Net sales fell 6% year-on-year (YoY) to Rs 17,922.79 crore during the quarter.
Total expense in the fourth quarter declined 10.6% YoY to Rs 15,951.66 crore during the period under review. Profit before tax (PBT) stood at Rs 3,598.70 crore in Q4 March 2020, up by 61.6% from Rs 2,226.82 crore in Q4 March 2019. The company received a tax credit of Rs 1,215.18 crore in Q4 March 2020 as against total tax expense of Rs 703.09 crore in the same period last year.
Manoj Jain, chairman & managing director, said GAIL (India) has made capex of Rs 6,100 crore in FY20, mainly in the on-going pipeline projects. He further stated that consequent upon debt resolution of Konkan LNG (KLL), GAIL's equity in KLL has increased from 40.92% to 69.06%. Accordingly, KLL has become GAIL's subsidiary.
The petrochemical plant, which had taken a shutdown in April 2020, is now operating at 100% capacity. The LHC production and transmission segments did not see much impact and are currently operating at 100% of FY20 levels.
GAIL (India) is an integrated energy company in the hydrocarbon sector and is engaged in gas marketing. As of 31 March 2020, the Government of India held 52.49% stake in the company.
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