GAIL Q3 Results Preview: Profit likely to fall by nearly one-third, margin by 40 bps amid weakness across segments

GAIL — India's largest gas distributor by sales — is likely to report a net profit of Rs 1,085 crore for the October-December period, a fall of 29.4 per cent compared with the previous quarter, according to Zee Business research.

Its revenue is estimated to decline three per cent sequentially to Rs 37,300 crore for the three-month period, according to the research.

GAIL's earnings before interest, taxes, depreciation and ammortisation (EBITDA) are pegged at Rs 1,545 crore for the December quarter, which translates to a decrease of 12.6 per cent compared with the previous three months. 

The gas utility's margin — a key measure of profitability for a business — is estimated to shrink by 40 basis points on a quarter-on-quarter basis, according to Zee Business research.  

Analysts expect weakness across the company's natural gas, petrochemical and LPG segments.

Disruption in supplies from Russia's Gazprom is expected to put pressure on GAIL's petchem business, according to the research. 

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GAIL shares increased 10.5 per cent in value in the quarter ended December 2022, a period in which the Sensex rose 5.9 per cent.

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