GAIL (India) (GAIL) Q1 24/25 earnings summary

Executive summary

• Turnover and profits rose sharply both sequentially and year-over-year, with Q1 FY25 standalone turnover at INR 33,627 crore and consolidated turnover at INR 34,822 crore, driven by robust gas transmission and higher domestic gas marketing volumes.

• Standalone PAT for Q1 FY25 was INR 2,724 crore, up from INR 1,412 crore year-over-year; consolidated PAT reached INR 3,183 crore, up from INR 1,792.99 crore.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30th June 2024, with a clean CAG audit for the 15th consecutive year.

• Fertilizer, power, and city gas distribution sectors remained the largest consumers of natural gas.

• No deviation or variation in the use of proceeds from listed non-convertible debentures; funds fully utilized as intended.

Financial highlights

• Gas marketing margin for Q1 FY25 was INR 1,994 crore; full-year guidance raised to at least INR 4,500 crore.

• Gas transmission volume increased to 131.79 MMSCMD from 123.65 MMSCMD sequentially; LPG transmission volume at 1,065 TMT.

• Standalone revenue from operations: ₹33,691.63 crore, up from ₹32,227.47 crore year-over-year; standalone net profit after tax: ₹2,723.98 crore, up from ₹1,412.00 crore year-over-year.

• Consolidated revenue from operations: ₹34,821.89 crore, up from ₹32,848.78 crore year-over-year; consolidated net profit after tax: ₹3,183.35 crore, up from ₹1,792.99 crore year-over-year.

• GAIL Gas subsidiary posted 5% revenue growth and 20% PAT growth sequentially.

Outlook and guidance

• Gas marketing volume expected to grow by 5% in FY25; transmission volume guidance maintained at 130-132 MMSCMD.

• Transmission volume expected to grow by 10-12 MMSCMD over next 2-3 years.

• Polymer and LHC production expected to normalize and potentially surpass capacity post-turnaround.

• Marketing margin guidance for FY25 set at minimum INR 4,500 crore.

• Management confident of favorable outcomes in ongoing legal matters based on legal opinions.