MOSL: GAIL INDIA (Neutral)-Huge miss on petchem and LPG/Liq. HC-concerns on US LNG contracts
GAIL India: Huge miss on petchem and LPG/Liq. HC; concerns on US LNG contracts
(GAIL IN, Mkt Cap USD11.3b, CMP INR349, TP INR350, Neutral)
- 4QFY19 EBITDA of INR16.8b was lower (-40% est., -1% YoY, -37% QoQ) due to poor performance in petchem & LPG/liq HC segments. Adj. for impairment of INR3.2b, PAT came in at INR14.4b (-19% est., +43% YoY, -16% QoQ). Impairment was on account of the Dabhol LNG terminal (~INR1.7b) and GAIL Gas Global (~INR1.5b).
- Reported PAT came in at INR11.2b (-37% est., +10% YoY, -33% QoQ), despite higher other income at INR8.7b (v/s INR2.8b in 4QFY18 and INR2.2b in 3QFY19). Depreciation was higher at INR4.6b (+27% YoY, +26% QoQ).
- For FY19, EBITDA was up ~25% YoY at INR95.3b with reported PAT at INR60.3b (+30% YoY).
Gail India is engaged in the natural gas, liquified natural gas ("LPG"), liquid hydrocarbons and petrochemicals exploration and production and city gas distribution through its natural gas trunk pipelines covering a length of around 7000 km and over 1900 km of LPG pipeline transmission network. Co. is also engaged in the telecom business with the network of approx. 13,000 km throughout India. Co. operates six primary business segments: Transmission Services, Natural Gas Trading, Petrochemicals, LPG and other Liquid Hydrocarbons, GAILTEL and City Gas Distribution.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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