Shares of GAIL India slipped over 7 per cent today after the state-owned gas utility reported a weak set of earnings for the quarter ended December 2022. Standalone profit plunged 92 percent year-on-year to Rs 245 crore for the quarter ended December 31, 2022 against the net profit of Rs 3,287 crore in the year-ago period.
On a sequential basis, net profit crashed 84 percent from Rs 1,537 crore. However, revenue from operations climbed 37.2 percent YoY to Rs 35,380 crore. The purchase of stock in trade (or cost of goods) rose almost 100% to Rs 32,190 crore from Rs 17,590 crore.
Avishek Datta – Research Analyst, Prabhudas Lilladher said GAIL posted sharply lower result across segments.
“GAIL reported Q3 results with EBIDTA/PAT of Rs 260 crore (-85%Q/Q; PLe Rs 14.8bn) and Rs 250 crore (-84%Q/Q; PLe Rs 970 crore), respectively. Result was weak and sharply lower across segments- transmission EBIT at at Rs 430 crore (Q2: Rs 7 bn), trading –Rs 860 mn (Q2: +Rs 3.6 bn), LPG –Rs 291 mn (Q2: +Rs 5 bn),” said GAIL after its first cut on Q3 earnings.
Subsequently, GAIL India stock touched an intraday low of Rs 91.8, down 7.41% on BSE. Later, the stock ended 4.19% lower at Rs 95 on BSE. In a year, the stock has gained 1.42% and lost 1.2% this year.
Earlier, GAIL India stock opened flat at Rs 99.10 today. Later, market cap of the firm fell to Rs 62,496 crore. Total 22.74 lakh shares of the firm changed hands amounting to a turnover of Rs 21.89 crore on BSE.
In terms of technicals, the relative strength index (RSI) of GAIL stands at 56.1, signaling neither the stock is overbought nor oversold. The stock has a one-year beta of 0.6, indicating very low volatility during the period. GAIL India shares trade higher than the 100-day and 200-day moving averages but lower than the 5-day, 20-day and 50-day moving averages.
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