Q2 2025 Gail (India) Ltd Earnings Call Transcript
Key Points
- GAIL (India) Ltd reported its highest ever PBT and PAT for the first half of FY25, driven by strong marketing margins and increased transmission volumes.
- The company achieved a gross turnover of INR 32,814 crore in Q2 FY25, showcasing robust financial performance.
- GAIL (India) Ltd's petrochemical segment returned to profitability in the first half of FY25, with plans to optimize sourcing to enhance profitability further.
- The company is on track with its major pipeline projects, with several expected to be completed by mid-2025, which will likely boost future transmission volumes.
- GAIL (India) Ltd has secured new LNG contracts that are reportedly cheaper than existing ones, potentially improving future cost efficiency.
- Gas marketing volumes decreased in Q2 FY25 due to reduced gas consumption by the power sector, attributed to prolonged monsoons and lower temperatures.
- The company's CapEx guidance for FY25 was revised down from INR 11,500 crore to a more conservative estimate of INR 8,000 to 9,000 crore.
- There was a significant drop in the contribution from the gas trading segment in Q2 compared to Q1, attributed to lower spreads between crude-linked LNG and Henry Hub LNG.
- The company faced challenges in sourcing volumes for marketing, leading to a reliance on spot market purchases, which did not yield the desired margins.
- Depreciation expenses decreased due to one-time adjustments, but future capitalizations could increase these costs again.
Ladies and gentlemen, good day. And welcome to Gail India Limited Q2 FY25 earnings conference call hosted by Philip Capital India Private Limited. As a reminder, all participants will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call? Y
You may press this, you may press the opera, you may press, you may please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to [Mr Nathan Davari from Phillip Capital India Private Limited]. Thank you and over to you Sir.
Thank you, Sheila. Good day. Ladies and gentlemen, on behalf of Philip Capital India Limited, I welcome everyone to Gail (India) Ltd second quarter FY25 earnings call.
Today we have the pleasure of having with us, the senior management team of Gail (India) Ltd led by Director (Finance) of Shri Rakesh Kumar Jain.
I will now hand
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