Shares of GAIL (India) Limited, a public sector gas company, fell sharply following the release of its Q4 results for January-March 2024. Despite a substantial 50% return over the past six months, the company’s latest financial results disappointed market expectations, causing a 5% drop in its stock price.
Q4 Profit and Revenue Fall Short
GAIL reported a net profit of ₹2177 crore for Q4, well below the market’s estimate of ₹2715 crore and a 23.4% decline from the previous quarter’s ₹2842 crore profit.
The company’s revenue for the February-March quarter was ₹32317 crore, missing the expected ₹32689 crore and down from ₹34237 crore in the previous quarter, marking a year-on-year decrease of approximately 5%.
EBITDA and Margins Decline
GAIL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 were ₹3559 crore, down from ₹3822 crore in the previous quarter and below the expected ₹3795 crore. This represents a 6.8% quarterly decline in operating profit.
The EBITDA margin also decreased, falling from 11.2% in the previous quarter to 11%, below the market expectation of 11.6%.
Stock Performance Snapshot
While GAIL’s stock has been relatively flat over the past month, it has surged by more than 50% in the last six months. Year-to-date, the stock is up over 15%, and it has increased by 74% over the past year. Despite the recent decline, the company’s long-term stock performance remains strong.
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