GAIL will report its first-quarter earnings on Friday and analysts expect the state-owned company to report a decent set of results this time around.
- The topline is expected to be flat at Rs 18,800 crore. EBITDA should go up by 34 percent. Margins are also expected to increase by 300 basis points (bps) on a sequential basis and profits are likely to go up by 15 percent.
- Last quarter, GAIL had an exceptional income of around Rs 866 crore. So that is something the street will be keeping an eye out on.
- The street is watching for higher margins because the operating costs are expected to be lower. In terms of segments – for the gas transmission business, which is big business for the company, volumes are expected to be flat but the EBIT is expected to increase 8 percent sequentially and 11 percent on a year on year (YoY) basis.
- In the gas marketing business, which is the highest revenue generator, EBIT is expected to go up by 9 percent on a YoY basis, 2 percent sequentially.