GAIL India is a shinning bright star today morning; from its close of Rs.171.70, the stock opened itself at a new 52-week high at Rs.175.15, and is presently trading around the same levels.
Two good news on the counter – firstly the very good numbers for Q3FY24 and secondly, the long term deal with Abu Dhabi firm.
Higher gas trading margins and fall in international prices of LNG leading to an increase in transmission tariff boosted the company’s net profit for the quarter at Rs.3193 crore v/s Rs.398 crore (YoY). Total income on the other hand, fell over 3% to Rs.35,182 crore. A 13% drop in total expenditure bolstered the bottomline.
The company said that its average natural gas transmission volume stood at 121.54 million metric standard cubic meter per day (MMSCMD) v/s 120.31 MMSCMD (QoQ) while its gas marketing volume stood at 98.14 MMSCMD v/s 96.96 MMSCMD.
On the other good news – the company signed a long-term pact to buy around 0.5 million metric tonne per annum LNG from UAE’s ADNOC Gas. As per the contract signed, deliveries will commence from 2026 onwards for a duration of 10 years, across India.Prior to this, GAIL also struck a deal with Vitol Asia to buy around one million metric tons of liquefied natural gas (LNG) annually for 10 years, starting 2026.