GAIL share price advanced over 2 per cent in the early trade on Thursday after the state gas utility firm reported a 50.76 per cent rise in March quarter net profit at Rs 769.99 crore
GAIL share price advanced over 2 per cent in the early trade on Thursday after the state gas utility firm reported a 50.76 per cent rise in March quarter net profit at Rs 769.99 crore on the back of higher volumes of gas transmission and bigger trading margins. The company has reported net profit of Rs 510.75 crore in the corresponding quarter a year ago.
At 11.27 am, GAIL was trading 0.92 per cent up at Rs 384.80. The scrip opened at Rs 385.30 and has touched a high and low of Rs 389.85 and Rs 381.75, respectively, in trade so far. However, the share price of the company ended 0.31 per cent down at Rs 380.10.
Net sales, however, fell 18.32 per cent to Rs 11,627.20 crore from Rs 14235.41 crore in the quarter under review. Sales of the company fell due to 15 per cent drop in petrochemicals prices and 38 per cent decline in LPG price realisations.
Religare Institutional Research in a report said, “We see a continued uptrend in petchem earnings over the next few quarters.” The brokerage house also raised GAIL FY17 and FY18 EPS by 5.5 per cent and 8 per cent with March 2017 target price of Rs 490 (Rs 450 earlier).