GAIL shares slip 2% on May 15 after the state-run gas utility released its financial results for the March quarter of FY25. The stock dropped to ₹182 intraday following a weaker-than-expected performance.
Market Performance
On May 15, GAIL (India) shares slipped 2% to ₹182 following the announcement of its Q4FY25 results. The dip came as investors reacted to a year-on-year (YoY) drop in net profits despite a healthy growth in revenue.
Main News: Weak Q4 Triggers Share Dip
GAIL reported a standalone net profit of ₹2,049 crore in Q4FY25, marking a 5.87% decline compared to ₹2,177 crore in Q4FY24. This underwhelming performance weighed on investor sentiment.
Despite the dip in profit, the company's revenue from operations rose 10.4% YoY to ₹35,707 crore from ₹32,334 crore in the same period last year.
Company Financial Highlights
Revenue
- Q4FY25 revenue: ₹35,707 crore
Q4FY24 revenue: ₹32,334 crore - YoY growth: 10.4%
EBITDA
- Q4FY25 EBITDA: ₹3,215 crore
- YoY growth: 13%
EBITDA Margins
- Q4FY25: 9%
- Q4FY24: 8.8%
Net Profit
- Q4FY25 net profit: ₹2,049 crore
- Q4FY24 net profit: ₹2,177 crore
- YoY decline: 5.87%
Transmission Volumes
- Q4FY25: 121 MMSCMD
- Q3FY25: 126 MMSCMD
Company Overview
GAIL (India) Ltd is a leading state-owned natural gas processing and distribution company in India. While the company recorded growth in revenue and EBITDA, the drop in transmission volume and net profit impacted overall sentiment in the stock market.
Summary
GAIL shares slip 2% following a mixed Q4FY25 performance. While the revenue and EBITDA showed growth, the dip in net profit and transmission volumes dragged the stock down. Investors are likely keeping a close watch on volume recovery and margin improvements in the coming quarters.
With a 10.4% rise in revenue and a 13% increase in EBITDA, GAIL showed signs of operational strength. However, the 5.87% dip in net profit weighed on the overall market reaction.
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