"GAIL India’s Gas trading business registered a robust performance with revenues increasing by 27.5% to Rs 9121.3 crore on the back of higher realizations. The volume for the quarter stood flat at 85.5 mmscmd. However, the segment EBIT declined by 38.8% to Rs 165.9 crore on back of lower marketing margins earned on volumes due to higher contribution by the APM gas. The company purchased 16 cargoes during the year and plans to purchase 30 cargoes depending of the availability of the Dabhol LNG terminal."
"Driven by strong performance by the gas trading business, GAIL India Ltd. (GAIL) reported a 17.9% yoy growth in revenues Rs 10,488.4 crore v/s Rs 8893.6 crore reported in previous corresponding quarter. Lower volumes, higher subsidy, retrospective tariff cuts forced the company post 38.3% decline in earnings to Rs 483.3 crore v/s Rs 783.1 crore in the previous corresponding quarter."
"With increasing demand for Natural gas and increased focus on clean energy, India in light of its objective of energy security would need to have secure assets and ensure gas availability either through domestic sources or imported LNG. GAIL, is a play on India’s gas demand. In addition, its foray into upstream and petrochemical sector would make GAIL a prefect growth proposition. With no major near term triggers, we expect GAIL to move sideways. GAIL is currently trading at 9.8x and 8.9x its FY13 and FY14 consensus earnings estimates, we recommend a HOLD on the stock," says Ventura Securities research report.
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