Posted by AI on 2025-05-13 16:19:58 | Last Updated by AI on 2025-12-20 08:04:53
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GAIL shares slip on disappointing Q4 earnings, despite strong natural gas volumes. The state-owned gas major's net profit fell close to 6%, missing expectations, while full-year dividend announced boosts sentiment.
Gas Authority of India Ltd. (GAIL) Q4 results were a mix of positives and negatives, leaving the stock's performance in a tricky spot. The state-owned natural gas major saw a 5.7% year-on-year (YoY) decline in net profit to Rs 2,177 crore, missing expectations, against a backdrop of high global energy prices and robust domestic natural gas volumes. This news weighed on its stock price during intra-day trading.
However, shareholders will receive a final dividend of Rs 23 per share, a payout ratio of 80%, thereby enhancing investor sentiment. This decision was informed by the company's Board of Directors during the meeting to consider Q4 and full-year financial results.
"Despite challenging conditions in the international energy market, GAIL has maintained its commitment to ensuring stable supplies of cleaner energy sources to its customers. While we await further action on the company's guided deleveraging strategy, today's results reflect our ongoing efforts to enhance profitability and maintain a stable financial position," said Krishna Prasad, Chairman and Managing Director of GAIL.
This development underscores the changing landscape of India's energy sector, highlighting the country's push for cleaner sources while adapting to global transitions.