GAIL (India) Q1FY21 result disappointed at almost all the parameters led by dismal result from trading division, which reported loss against expectations of profit. Though, volume decline was lower than our estimates but, 1) inventory loss of Rs2.5 bn at marketing division, 2) net loss at petchem division due to lower utilization, and 3) sharp fall of 46% YoY in LHC profit translated to 72%/80% YoY fall in EBITDA/PAT. On a positive note, the management highlighted that transmission/trading business has reached closer to preCovid levels while petchem and LHC plants are operating at 100% utilization. However, wide spread between Spot and long term contract LNG price raises concern over profitability of gas trading division. The company expects transmission volume to increase by 10mmscmd...