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GAIL (India) Ltd., the country's largest gas distributor, witnessed a surge in its share price, reaching a 52-week high, after the company reported impressive Q1 FY25 results that surpassed market expectations. The company's robust performance was fueled by a significant increase in gas transmission volumes, a rise in domestic natural gas marketing, and improved margins in natural gas marketing. This positive performance translated into a 77.5% growth in consolidated net profit, reaching ₹3,183.35 crore in the first quarter, compared to ₹1,792.99 crore in the same period last year.
The company's revenue from operations also saw a marginal increase, reaching ₹34,821.89 crore in Q1 FY25, compared to ₹32,848.78 crore in the corresponding period of the previous year. Notably, the company's EBIT (Earnings Before Interest and Taxes) from the natural gas transmission segment recorded a substantial 47.3% growth in the June quarter, rising to ₹1,446.87 crore from ₹982.45 crore in the March quarter. This segment also witnessed a YoY growth of 40%, reaching ₹1,028.33 crore.
Further strengthening the positive outlook, the EBIT from the Natural Gas Marketing segment experienced a significant jump, reaching ₹2,036.13 crore in the June quarter, compared to ₹1,507.65 crore in the previous quarter. However, the Petchem segment reported an EBIT loss of ₹49.31 crore in Q1 FY25, compared to an EBIT of ₹533.41 crore in the previous quarter and an EBIT loss of ₹301.75 crore in the same period last year. Despite this, the overall strong performance of the company's core segments, particularly in gas transmission and marketing, contributed to the impressive growth in profits and drove the surge in the share price.
The positive outlook for GAIL India was further supported by the 'Buy' rating assigned by foreign brokerage firms Citi and UBS. Both firms set a target price of ₹250 apiece for GAIL India shares. These positive signals from market analysts, coupled with the company's strong Q1 performance, contributed to the impressive growth of the share price, which has risen more than 10% in one month, over 17% in three months, and delivered over 51% year-to-date (YTD) returns. The stock has also witnessed over 105% returns in one year. As of 9:50 am, GAIL India shares were trading 4.94% higher at ₹245.20 apiece on the BSE, reflecting the market's confidence in the company's future performance.
Source: GAIL India share price jumps over 5% to 52-week high as Q1 results beat estimates