Share price of GAIL reversed trend after 2 days of consecutive fall after the firm recorded a 12.9% (YoY) rise in consolidated profit at Rs 2,029.51 crore in Q3 of FY20 against Rs 1,797.04 crore in Q2, primarily due to better margins in gas marketing and liquid hydrocarbons (LHC).
GAIL share price gained 4.15% to the intraday high of Rs 126.85 on BSE. The shares of the company closed 0.98% lower at Rs 121.80 on Monday.
Volume-wise, 3.35 lakh and 110.3 lakh shares are changing hands on BSE and NSE counters, respectively.
GAIL stock is trading higher than 5, 20, 50 and 100-day moving averages but lower than 200-day moving averages. The stock has risen 7% in one week, 1.5% in one month and 5% year-to-date. Market capitalisation of large-cap stock stands at Rs 56,873 crore.
However, company's consolidated revenue declined 11.5% to Rs 17,898.16 crore during the quarter.
The company board has also declared an interim dividend of 64 per cent for the financial year FY20 at Rs 6.40 per equity share, amounting to Rs 2,886.49 crore.
On a standalone basis, the company's profit fell 25.61% to Rs 1,250.65 crore, while its revenue declined 10.21% to Rs 17,768 crore. GAIL's EBITDA rose 32.6% to Rs 2,072.4 crore while operating margin expanded to 11.7% from 8.7% sequentially.
Ashutosh Karnatak, GAIL Chairman and Managing Director, said the company had been able to achieve growth in profit in Q3 despite a significant decline in petrochemicals prices.
"This has been due to better operational efficiency and physical performance in comparison to Q2 accompanied by an increased capacity utilisation of the petrochemical unit at Pata, over 100 per cent."
He added GAIL was in sync with the Centre's vision of expanding the share of natural gas to 15 per cent in the energy basket in India.