GAIL India Ltd disclosed a 244 per cent hike in its June quarter net profit, bolstered by a turnaround in petrochemical business and sale of stake in Mahanagar Gas, which retails CNG in Mumbai.It was anticipated that the company would carry forward its earnings revival in the quarter ended June 2016 with the profit & revenue surging 4 percent. Net profit in April-June 2016 stood at Rs 1,335 crore as compared with Rs 388 crore in the corresponding period a year ago, according to the statement provided by the company.This was chiefly due to the revenue GAIL got from the IPO of Mahanagar Gas Ltd.The company further added that GAIL's PAT, keeping aside gain from stake sale in Mahanagar Gas Limited amounts to Rs 846 crore, implying an increase by 118 per cent.During the quarter, GAIL's petrochemical business faced a turnaround with production and sales rising 149 per cent and 121 per cent respectively.This caused the revenue to increase in this segment by 95 per cent to Rs 1,133 crore, whereas the profit stood at Rs 9 crore as versus loss of Rs 397 crore in the corresponding period of the previous year.
On account of the anticipated numbers, GAIL share price fell marginally by 2.08% on 7th September. But post the Q1 result the stock on 8th September, the stock rolled above 2.56%, opening at Rs. 407, and touched the day’s high and low at Rs. 407 and Rs. 400 respectively.The closest support level of GAIL share price is seen at Rs. 383 whereas the closest resistance level is seen at Rs. 409. The company has a market cap amounting to Rs. 50225.36 (Cr) with a book value of Rs. 285.97.
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