GAIL (India) Ltd.
GAIL (India) Ltd. was incorporated in August, 1984 as a Central Public Sector Undertaking under the Ministry of Petroleum & Natural Gas, with the mission of “accelerating and optimizing the effective and economic use of Natural Gas and its fractions for the benefit of the national economy”. Government of India now holds 51.45% shares of the company. GAIL became a Navratna in 1997 and is now one of the ten Maharatna Public Sector Undertaking, the highest status conferred to any PSU.
Key Business
- Natural Gas.
- Liquid Hydrocarbons.
- LPG Transmission.
- Petrochemicals.
- City Gas Distribution.
- E&P.
- Renewable energy
- Gailtel
Shareholding Pattern
- PUBLIC GROUP
- PROMOTER GROUP
Financial Summary
| Particulars | March 2023 | March 2022 | March 2021 |
| Sales | 1,45,668 | 92,770 | 57,372 |
| Sales Growth % | 57% | 62% | -21% |
| Expenses | 1,38,166 | 77,608 | 50,127 |
| Operating Profit | 7,502 | 15,161 | 7,245 |
| OPM % | 5% | 16% | 13% |
| Profit after tax | 5,596 | 12,304 | 6,143 |
| EPS in Rs | 8.54 | 18.4 | 9.21 |
Synopsis of Financials
- Gross turnover increased by 8% to Rs.34,168 Crores in Q3 FY2024.
- Profit before tax during the quarter increased to Rs.3694 Crores, up by 18%.
- GAIL expects to earn at least Rs.4000 Crores in gas marketing margin for financial year 2025-2026.
Final Outlook
- Improving cycle and structural growth. Still some gas left in the tank; raise earnings and valuations.
- FY25E/FY26E EPS up 7 per cent/10 per cent on improved outlook for commodity businesses. Near-term hurdles for tariffs; 13 per cent CAGR for transmission EBITDA in FY24-27E.
- GAIL Ltd has shown consistent growth over the past 5 years with more than a 150% return in the last 3 years. Its P/E ratio is lower than the industry average and median. Gross turnover has increased by 57% over the previous year, indicating healthy business activity. The company offers a dividend yield that is the best among its peers.
- However, expenses have increased by 75% from the last year, primarily due to increased purchases of stock in trade. The inventory of gas has significantly increased, which is expected to generate profits upon sales. Overall, these factors suggest a positive outlook for GAIL Ltd’s stock price in the future.
