State-owned GAIL reported a January-March quarter profit at Rs 1,908 crore today, thereby missing estimates, which led to a 3.4 per cent fall in its share price today. The company's quarterly net profit for the same period last year stood at Rs 3,018.2 crore.
The company's revenue for the Jan-March quarter stood at Rs 15,449 crore, while EBITDA (earnings with interest, taxes, depreciation, and amortisation) was Rs 2,465 crore. The net margin rose 16 per cent as compared to 12.4 per cent in Q3.
On a year-on-year basis, GAIL clocked in a net profit of Rs 4 890.18 crore for 2020-21, which is way below Rs 6 620.63 crore profit in FY20. The revenue for the full fiscal year stood at Rs 56,737.79 crore compared to Rs 73 293.19 crore in FY20.
After the board's approval for buyback of equity shares on January 15, the company bought back 6,97,56,641 fully paid-up equity shares of Rs 1O each face value for Rs 1,046.35 crore (excluding taxes) at Rs 150 per equity share. The settlement of all valid bids was completed on March 19 and the equity shares bought back were extinguished on March 22.
Under a buyback, a company buys its outstanding shares to reduce the number of shares available in the open market. Government holding in the company stands at 51.45 per cent. The government wants public sector undertakings to either meet their targets for capital expenditure or "reward the shareholder in the form of a dividend" or share buyback.
Meanwhile, the GAIL stock has dipped 3.04 per cent to Rs 162.70 compared to the previous session close of Rs 167.8 on the National Stock Exchange.
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