Segment wise, natural gas transmission revenue stood at Rs 1268.13 crore, down by 14% YoY and accounted for 8% of sales. PBIT from the same was down by 17% to Rs 716.65 crore with PBIT margin at 56.5% as compared to 58.1% for June19 quarter. LPG transmission revenues stood at Rs 153.55 crore up by 14% YoY and accounted for 1% of sales. PBIT from the same rose 32% to Rs 81.48 crore. PBIT margins stood at 53.1% as compared to 45.7% for June19 quarter. Natural gas marketing segment revenue stood at Rs 11635.38 crore down by 38% YoY and accounted for 73% of sales. PBIT from the same was loss of Rs 614.06 crore compared to profit...

Brigade Enterprises: BRGD reported 1QFY21 pre-sales volume/value at 0.42mn sqft/Rs 2.5bn, registering decline of 63%/58% YoY. While leasing activity was conspicuous by its absence, rental collection from existing portfolio remained healthy at 98% in 1QFY21. The company has given 50% waiver on MG during the lockdown for the retailers who have reopened at the mall. BRGD has started operations at hospitality assets and hopes to achieve gross operating breakeven by 2QFY21. Collection of Rs 3.8bn led to positive operating cashflow of Rs 820mn. Net debt also remained stable at Rs 29bn (Rs 28bn at FY20-end, BRGD's share). Despite midterm challenges in hospitality and retail business, we maintain BUY with target price of Rs 213/sh as BRGD has strong liquidity. Lease tie-up in BTG Bengaluru will lead to further re-rating. Balaji Amines: Our BUY recommendation on Balaji Amines with a price target of INR 785 is premised on (1) robust demand from pharma and agrochemical industry that comprise 77% of its revenue mix, and (2) faster-than-anticipated recovery in plant utilisation. 1Q EBITDA/APAT was 41/71% above our estimates, attributable to (1) 10% higher sales volumes and (2) 28% higher per-kg EBITDA. JMC Projects: JMC Project's (JMC) 1QFY21 financial performance has been severely impacted as its order book has a high exposure to the worst-affected urban regions, mainly in the buildings and factories segment (58% of order backlog). With almost a one-month loss due to the lockdown, execution is now gradually ramping up with labour availability improving from 60% to 75% QoQ. Despite weak execution, order intake has been...

Gas trading loss looms large in massive miss NBIE Values your patronage- Vote for The Team in the Asia Money poll 2020. Click Here GAIL's 1QFY21 results were disastrous, with revenue beat of 25.16%/(13.3%) at Rs120.87bn and PAT miss of 76.61%/75.5% at Rs2.56bn vs NBIE/street estimates. The gas marketing segment reported EBITDA loss at Rs5.17bn vs profit of Rs8.61bn/Rs6.31bn YoY/QoQ. During the concall, the management reported a revival across all segments to near precovid volumes that could still be at risk from future lockdowns, which is unpredictable. The management could not explain why such a steep loss in the gas trading segment earnings...

Gas transmission segment volumes were down 14.4% YoY at 90.2 mmscmd (our estimate: 97.5 mmscmd) as offtake was lower due to impact of lockdown. Going ahead, we estimate transmission volumes at 109 mmscmd, 127.5 mmscmd for FY21E, FY22E, respectively, due to additional domestic gas from newer fields. The gas transmission EBIT at | 716.7 crore, was down 16.6% YoY but above our estimates due to lower costs. Gas trading volumes declined 15.9% YoY to 81.2 mmscmd. Gas trading reported loss of | 545.5 crore (estimated profit: | 214.9 crore) as the company had to...

Significant impact in physical performance coupled with lower price realisations. Maintain Accumulate GAIL's Q1FY21 results were below our estimates on revenue front and...

Weak performance: GAIL reported sharply lower than expected Q1FY21 results- EBITDA Rs6.2bn (PLe: Rs16.9bn; -72% YoY) and PAT at Rs2.5bn (PLe Rs11.0bn; -80% YoY), respectively. Profit was dragged by lower...

GAIL's Q1FY21 PAT was below estimates at Rs 2.6bn (80% YoY).

On FY22E, GAIL, GSPL and PLNG are trading at a PER of 6.4-11.9x, a 17-39% discount to their five-year average. By FY22E, operating cash flows should improve by up to 21% YoY, and FCF yield should increase up to 1,020bps YoY for these three companies. A sharp increase in domestic gas supply growth, from no growth over FY17FY20 to a 12% CAGR over FY21FY24E, and the uneven impact of COVID-19 on various gas consumers should shuffle the deck in the gas utilities sector. Coupled with global excess supply (over demand) keeping LNG prices competitive, this should benefit Indian gas utilities. We expect supply and (low) price led 9.8% CAGR in Indian natural gas demand over FY2124E to drive earnings growth of 42-45% (FY21FY23E) as well as stock price upside potential of over 19-27% for our top picks GAIL, GSPL, and Petronet LNG. Rising capacity utilisation should drive growth for these stocks, which currently trade at compelling valuations.

GAIL (India) consolidated net sales of the company fell 6% to Rs 17922.79 crore in Q4FY20 compared to Q4FY19. OPM of the company rose 660 bps to 15.9% leading to 62% increase in operating profits to Rs 2841.93 crore. Other income was up 17% to Rs 955.56 crore. As a result PBDIT increased 48% to 3797.49 crore. Interest cost rose 787% to Rs 215.62 crore while depreciation rose 31% to Rs 639.89 crore. PBT was up 43% to Rs 2941.98 crore....

GAIL has come out with robust set of numbers in Q4FY20 led by strong profit growth from petrochemicals and gas trading division. Though, volume growth remain muted for most of the segments owing to lockdown for 9 days in Mar'20 but lower gas cost, better marketing margin and cost efficiency across segment boosted profits. Further, out of total 120 cargoes in FY20, 46 were sold overseas and 74 in India and expect similar ratio for FY21 as well. Out of total 90 LNG cargoes from US, the company has already sold 37 cargoes overseas and nearly 70% of total volume is hedged. The company mentioned that except CNG volume, volume at all the segment has come...

GAIL reported a beat of 25% on EBITDA at INR24.8b (+47% YoY, +19% QoQ). EBITDA was up 13% YoY to INR11.6b, with transmission volumes at 109mmscmd (flat YoY and QoQ), implying ~53% utilization. Gas transmission EBIT was up 15% YoY to INR8.9b. EBITDA was flat YoY at INR1.1b, with volumes up 2% YoY at 1.04mmt (102% utilization). LPG Transmission EBIT was also flat YoY at INR0.9b. EBIT was higher than expected at INR6.0b (+3% YoY, +29% QoQ), while volumes stood at 97.8mmscmd (flat YoY, +2% QoQ). Petchem sales were lower 18% YoY/QoQ at 174kmt; however, EBITDA at INR1.85b (~2x YoY) was due to lower gas cost. Nevertheless, realization was also lower 13% YoY at INR70/kg (flat QoQ). EBITDA came in at INR5.5b (+23% YoY, +74% QoQ), led by better realization. Transmission segment should remain a major contributor to EBIDTA (>50% share) and volumes are expected to grow to ~125mmscmd in FY22E.

Healthy beat offsets risk to gas trading margin NBIE Values your patronage- Vote for The Team in the Asia Money poll 2020. Click Here GAIL's results were a beat across key segments, driving revenue beat of 25.9% at Rs177.53bn and PAT beat of 255% at Rs29.16bn vs NBIE/street estimates. During the webanalyst meet, management reported normal operations in petchem, LPG and HC and expects a revival in prices/margins. However, the company cautioned about some delay in the gas business returning to pre-COVID levels as the CNG market is down 50% due to the lockdown in key markets Delhi and Mumbai. The work on ongoing projects, including the...

Change in estimates: We raise our FY21/22 EBITDA estimate by 64/3% to INR 46/64bn driven by higher than estimated (1) Realisation for petchem, LPG and liquid hydrocarbons and, (2) Transmission volume and tariffs. Our EPS estimate jump by 2.8x/26% in FY21/22 to INR 5.9/8.9 considering the change in effective tax rate to 25.2% (36.2/31.4% in FY19/18). Our ADD recommendation on GAIL with a TP of INR 110 is based on 9% CAGR expansion in gas transmission volume over FY21-23E to 113mmscmd on the back of (1) Better pipeline connectivity, (2) Revamp of fertiliser plants and (3) Benign gas prices.

GAIL's Q4FY20 PAT was well above estimates at Rs 29bn (+266% YoY).

GAIL's Q4FY20 results were in line with our estimates on revenue front and above estimates on profitability parameters. Natural gas transmission segment revenues were up 6% YoY and saw marginal decline sequentially due to volumes lost in last 10-15 days of March due to nationwide lockdown, which reduced the consumption in CGD sector and many industries and plants were shut. Gas marketing segment EBIT improved sequentially. Weakness in the petchem business continued due to low demand and low...

Strong performance: GAIL reported better than expected Q4FY20 resultsEBITDA Rs24.7bn (PLe: Rs16.9bn; +47% YoY) and PBT at Rs24.5bn (PLe Rs16.7bn; +19% YoY), respectively. EBIDTA also included provision write back of Rs1.38bn towards Konkan LNG impairment, Rs1.79bn for Gail Global USA and Rs1.17 for RGPPL. PAT at Rs 28.1bn got a boost from tax write back as company moved to lower tax regime. For FY20, EBIDTA and PBT of Rs83.6bn (-12%YoY) and Rs78bn (-17%YoY) respectively. PAT at Rs64.1bn...

Natural gas consumption in Feb'20 increased 10% YoY to 160mmscmd as offtake climbed across sectors (except power) fertiliser (47mmscmd, +9% YoY), CGD (30.4mmscmd, +17% YoY), and other industrials (52.9mmscmd, +13.7% YoY).

Incredible value despite near term pain from lockdown We maintain BUY on GAIL with our new reduced TP of Rs133 that offers 91% upside from CMP post the 43% crash in the stock in the last three months. We have cut our SOTP-based TP by 14.8% post 6.1%/31.1%/19.5% cut in FY20E/FY21E/FY22E earnings due to likely hit in volume post the mandatory three-week national lockdown to contain the spread of COVID19. We have cut our assumptions on volume by 8-10% in gas transmission and marketing for FY21E, and margins in petchem/LPG on concerns over lower demand as well as pricing in polymers and refining. We see another 10-20% risk to...

Crude prices witnessed a sharp decline in March due to spread of Covid-19 across the globe and Opec deal failure. A likely increase in oil output by both Saudi Arabia and Russia from Q1FY21E and lower demand are expected to lead to a sizeable oversupply in the oil market. Subsequent low oil prices are expected to significantly affect ONGC's profitability....

gas and LPG transmission segment; (2) bounce back of gas trading margin of US$0.21/mmbtu from the lows of US$0.12/mmbtu in 2QFY20; (3) Petrochemical plant utilisation rose to 106% with sharp recovery in EBITDA/kg to Rs5 from Rs1.5in 2QFY20; (4) Despite lowest LPG price realisation, segment reported rise in sequential EBITDA on the back of lower gas cost. Notably, the company...