GAIL shares extended losses after the gas major's quarterly earnings missed Street estimates. The oil and gas basket was also under pressure on fears of taxes on windfall gains from a surge in crude oil prices.
GAIL shares extended intraday losses in late afternoon deals on Friday after the gas major reported a net profit of Rs 2,683 crore for the January-March period, down 18.4 percent on a quarter-on-quarter basis.
The entire oil and gas basket was also under pressure after a 25 percent windfall tax on profits of the companies on account of the surge in crude oil rates so far in 2022. The UK's move triggered fears on Dalal Street whether similar steps can be taken in India.
The decline in GAIL's quarterly profit came despite a sequential increase of 4.6 percent in its revenue to Rs 26,962 crore as tax expenses declined.
Its total expenses increased 7.8 percent to Rs 23,845.8 crore, on account of a 12.6 percent jump in the amount it shell out to purchase stock in trade, according to the filing.
GAIL's tax outgo came down to Rs 863 crore in the fourth quarter of the year ended March 2022, from Rs 1,020 crore in the October-December period, according to a regulatory filing.
The company's earnings before interest, taxes, depreciation and ammortisation (EBITDA) fell 12.1 percent sequentially. The EBITDA margin came down by 260 basis points to 13.8 percent — missing Street estimates by 80 basis points.