In Wednesday’s trading session, shares of GAIL (India) Limited, the country’s largest natural gas company, surged by 5.4 percent, reaching a new 52-week high of Rs. 246.35. This rise followed the company’s announcement of its Q1 FY24-25 financial results, which showed a significant increase in net profit—up 28.6 percent quarter-on-quarter (QoQ) and 77.5 percent year-on-year (YoY).
By 1:12 p.m., GAIL’s shares were trading at Rs. 239.75, up 2.6 percent from the previous closing price of Rs. 233.65, with a market capitalization of Rs. 1.57 lakh crore.
The share price volatility came after GAIL released its Q1 FY24-25 financial results through stock exchange filings on Tuesday after market hours. The company’s consolidated revenue for the quarter was Rs. 34,822 crore, reflecting a 6 percent increase YoY from Rs. 32,848 crore in Q1 FY23-24 and a 6 percent growth QoQ from Rs. 32,833 crore in Q4 FY23-24.
Net profit for the quarter surged to Rs. 3,183.4 crore, up 77.5 percent YoY from Rs. 1,793 crore in Q1 FY23-24, and up 28.6 percent QoQ from Rs. 2,474.3 crore in Q4 FY23-24.
Standalone net profit also rose by 25 percent to Rs. 2,724 crore in Q1 FY24-25, compared to Rs. 2,177 crore in Q4 FY23-24. This increase was driven by higher gas transmission volumes, greater domestic natural gas marketing volumes, and improved marketing margins.
The Chairman & Managing Director of GAIL reported a capex of approximately Rs. 1,659 crore for the June quarter, primarily allocated to pipelines, petrochemicals, and equity investments in joint ventures. This represents about 21 percent of the company’s annual capex target of Rs. 8,044 crore.
Additionally, GAIL has advanced its Net Zero carbon target for scope-1 and scope-2 emissions to 2035, revised from the previous target of 2040.
Over the past year, GAIL’s shares have delivered impressive returns of nearly 101.6 percent, and have gained approximately 44.2 percent year-to-date.