Updates on the execution of new pipelines and the status of Kochi- Mangalore pipeline would be keenly followed.
The stock rose 1.52 per cent to hit a high of Rs 99.55 on BSE.
Emkay Global said GAIL’s gas marketing margins could touch negative levels. Its city gas distribution (CGD) margins would see higher unit opex while upstream activity would be hit by lower oil & gas prices, Emkay said.
The brokerage expects GAIL’s profit to fall 47.60 per cent YoY to Rs 674.70 crore from Rs 1,287.50 crore. Sales are seen declining 34.5 per cent YoY to Rs 11,995.80 crore from Rs 18,310.60 crore.
Ebitda margin is seen sliding to 11 per cent from 12 per cent YoY, and from 14 per cent in the March quarter.
“We expect an 18 per cent sequential fall in gas volumes. Gas trading margins to be near negative. Petchem EBIT estimated to fall on higher opex per unit and lower utilisation. LPG realisations may decline 28 per cent sequentially,” Emkay said.
HDFC Institutional Equities is estimating a 58 per cent plunge in profit for GAIL to Rs 500 crore while it sees sales tanking 30.3 per cent to Rs 13,800 crore. It sees Ebitda margin for the quarter at 9.3 per cent.
Kotak Securities, meanwhile, sees only 24.6 per cent drop in profit at Rs 970.20 crore. Sales it says may fall 28.9 per cent to Rs 13,023 crore.
“We expect a sharp sequential decline in Ebitda led by lower volumes across all segments and lower profitability of gas marketing, petchem and LPG production segments amid adverse prices,” it said while pegging Ebitda margin at 11.8 per cent.