2.42% Yield: Maharatna GAIL To Declare Interim Dividend For FY24, Record Date Announced; What To Expect In Q3?

Mahartna status natural gas producer, GAIL (India) is set to declare its first interim dividend for the financial year 2023-24 alongside Q3 results on January 29, 2024. The company has a dividend yield of 2.42%, among the highest in the PSU stocks. GAIL's share price will be in focus on Monday. In Q3, the company's trading and transmission performance is expected to remain
strong.

GAIL Q3 Results Preview:

As per the regulatory filing, GAIL is scheduled on January 29, 2024, to consider the Un-Audited Financial Results for the Quarter ended 31st December 2023 and recommendation for payment of Interim Dividend for FY 2023-24.

In its preview report, Prabhudas Lilladher said, "GAIL's trading and transmission performance is expected to remain strong, however, we expect petchem performance to remain under pressure. Transmission volumes are likely to reach 122 mmscmd, while trading volumes are estimated at 100 mmscmd. We anticipate petchem volumes at 178KT in Q3."

Further, the brokerage's note added, that GAIL's operating performance is expected to improve QoQ with an increase in transmission, trading and petchem volumes and realizations It said, "We estimate transmission, trading volumes to reach 118 and 103 mmscmd, respectively and petchem volumes to reach 202KT in Q2."

Meanwhile, Emkay Global in its note said, "Expect transmission/marketing volumes to grow by 1%/2% QoQ, Gas marketing margins expected to decline QoQ while petchem utilization at 95%. LPG realisations is expected to increase 36% QoQ."

In Q3FY24, Emkay Global estimates sales to be at Rs 35,758.2 crore for GAIL, up by 1.1% YoY and 12.4% QoQ. While EBITDA and EBITDA margin is factored at Rs 3,114.7 crore and 8.7% in Q3FY24. PAT is seen at Rs 2,030.4 crore, up by 726.3% YoY but down by 15.6% QoQ.

During the second quarter of FY24, GAIL posted revenue from operations of Rs 32,848.70 crore versus Rs 37,942.15 crore in Q2FY23, and Rs 33,264.06 crore in Q1FY24. PAT stood at Rs 1,791.85 crore in Q2FY24 compared to Rs 3,252.95 crore in Q2FY23 and Rs 634.18 crore in Q1FY24.

GAIL Dividend:

Apart from Q3 results, the company's board will also consider the payment of an interim dividend for FY24 on January 29. The details of the dividend payout will be known on Monday.

GAIL has fixed the record date for the payout. It said, "For the purpose of payment of Interim Dividend, if so approved by the Board, the "Record Date" will be Tuesday, 06th February 2024."

Currently, GAIL has a dividend yield of 2.42%. It paid dividends up to 40% amounting to Rs 4 per share in FY23.

GAIL Share Price:

On BSE, GAIL's share price stood at Rs 165.40 apiece, up by 0.4% with a market cap of Rs 1,08,752.15 crore on January 25. In a year, GAIL shares have zoomed by nearly 75%.

About GAIL (India)

GAIL (India) Limited is India's leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P, etc. It owns and operates a network of around 15,583 km of natural gas pipelines spread across the length and breadth of the country.

It is also working concurrently on the execution of multiple pipeline projects to further enhance the spread. GAIL commands ~70% market share in gas transmission and has a Gas trading share of over ~ 50% in India. GAIL and its Subsidiaries / JVs also have a formidable market share in City Gas Distribution. In the Liquefied Natural Gas (LNG) market, GAIL has a significantly large portfolio. GAIL is also expanding its presence in renewable energy like Solar, Wind and Biofuel.