Share price of GAIL India Limited surged 4.35 per cent on Tuesday morning after the PSU gas distribution company declared strong fiscal third-quarter financial results. GAIL India shares were trading at a price of Rs 127.15 on Tuesday morning, up from its previous close of Rs 121.80. The company posted an 18 per cent growth in profit after tax (PAT) quarter-on-quarter. In a press release, the company attributed the rise in profits to better margins in gas marketing and LHC. "In the nine month period ended December 2019, gross sales of Rs 54,021 crore was recorded as against Rs 56,101 crore in the corresponding period of last year. PBT stood at Rs 5,388 crore against Rs 7,345 crore and PAT at Rs. 3,602 crore against Rs. 4,903 crore, PBT and PAT witnessed a fall of 27% mainly due to reduction in Petrochemical and LHC prices by around 22% and 17% respectively," GAIL India said in the release.
GAIL also declared an interim dividend of Rs 6.40 per share on the face value of Rs 10 each. Consolidated revenue of the gas major declined 11.52 percent to Rs 17,898.16 crore during the quarter. Chairman & Managing Director, GAIL, Ashutosh Karnatak in a statement said that the company was successful in achieving growth in quarter despite a decline in petrochemical prices.
The share price of GAIL has seen a jump of 11 per cent since February 3, when it fell down to a price of Rs 114.50 in the post budget trading session. The inclusion of gas in the Goods and Services Tax (GST) regime is believed to be a big benefit for the state-owned firm. The expansion of the national gas grid from the present 16,200 km to 27,000 km planned by the government could also work to GAIL's benefit.
S&P BSE Sensex was up 356.65 or 0.87 per cent at 41,336.27 points while the broader Nifty 50 was up 111.70 or 0.93 per cent at 12,143.20 points.