GAIL India Q1 results 2024-25

GAIL India’s First Quarter Results for FY 2024-25: A Detailed Analysis

GAIL (India) Ltd has reported its first quarter results for the financial year 2024-25, showcasing a significant rise in net profit and overall financial performance. This detailed analysis will break down the key figures and provide insights into GAIL India’s financial health and market performance.

Revenue and Net Profit Analysis

On Tuesday, July 30, 2024, GAIL (India) Ltd announced its first quarter results, revealing a remarkable 77.54% increase in net profit. The gas giant recorded a consolidated net profit of ₹3,183.35 crore, up by ₹1,390.36 crore from ₹1,792.99 crore in the same quarter of the previous year.

Revenue Growth

GAIL’s revenue saw a substantial growth, reaching ₹34,821.89 crore, compared to ₹32,848.78 crore in Q1 2023-24. This 6% increase, amounting to ₹1,973.11 crore, reflects the company’s robust performance in the market.

Total Income Increase

The total income of GAIL India rose by 6.18%, or ₹2,041.65 crore, to ₹35,042.44 crore, compared to ₹33,000.79 crore during the same quarter of the previous year. This growth is a testament to the company’s effective strategies and strong market presence.

Expense Analysis

Despite the impressive revenue and profit growth, GAIL India experienced a marginal increase in total expenses. Let’s delve into the specifics.

Total Expenses

GAIL India’s total expenses increased by 0.95%, or ₹297.57 crore, to ₹31,392.82 crore, compared to ₹31,095.25 crore in Q1 2023-24. This minor rise indicates efficient cost management amid growing revenues.

Cost of Materials Consumed

The cost of materials consumed saw a significant reduction of 25.66%, or ₹493.62 crore, bringing it down to ₹1,429.98 crore from ₹1,923.60 crore in the same quarter of the previous year. This reduction highlights improved procurement and resource management.

Depreciation and Amortization Expenses

Depreciation and amortization expenses fell sharply by 59.66%, or ₹430.54 crore, to ₹1,152.19 crore, down from ₹721.65 crore previously. This decrease suggests better asset utilization and effective amortization strategies.

Inventory Addition

Inventory addition also decreased notably by 39.59%, or ₹266.71 crore, to ₹406.93 crore from ₹673.64 crore during the first quarter of the previous year. This decline indicates efficient inventory management and turnover.

Stock Performance

Following the announcement of its first quarter results, GAIL India’s shares showed a positive response in the market. The shares rose by 0.75%, or 1.75 points, closing at ₹233.65 on the Bombay Stock Exchange (BSE) after the trading session on Tuesday, July 30, 2024. This uptick reflects investor confidence in the company’s strong financial performance.

Conclusion

GAIL India’s first quarter results for the financial year 2024-25 demonstrate a significant improvement in net profit and revenue, coupled with efficient cost management. The company’s ability to increase revenue while keeping expenses in check is a positive indicator of its financial health and market position. The rise in stock price further underscores investor confidence in GAIL India’s future prospects.

FAQs

1. What is GAIL India Ltd’s net profit for Q1 2024-25?

A. GAIL India’s net profit for Q1 2024-25 is ₹3,183.35 crore, a 77.54% increase from the previous year.

2. How much did GAIL India’s revenue grow in Q1 2024-25?

A. GAIL India’s revenue grew by 6% to ₹34,821.89 crore in Q1 2024-25.

3. What caused the decrease in GAIL India’s depreciation and amortization expenses?

A. The decrease in depreciation and amortization expenses by 59.66% suggests better asset utilization and effective amortization strategies.

4. How did GAIL India manage its cost of materials consumed?

A. GAIL India reduced its cost of materials consumed by 25.66%, highlighting improved procurement and resource management.

5. What was the response of GAIL India’s stock to the Q1 2024-25 results?

A. GAIL India’s stock rose by 0.75%, closing at ₹233.65 on the Bombay Stock Exchange (BSE).

6. How much did GAIL India’s total income increase in Q1 2024-25?

A. GAIL India’s total income increased by 6.18%, reaching ₹35,042.44 crore.

7. What was the percentage increase in GAIL India’s total expenses in Q1 2024-25?

A. GAIL India’s total expenses increased by 0.95% in Q1 2024-25.

8. Why did GAIL India’s inventory addition decrease in Q1 2024-25?

A. The inventory addition decreased by 39.59% due to efficient inventory management and turnover.

9. What does the revenue growth indicate about GAIL India’s market performance?

A. The revenue growth indicates a robust market performance and effective strategies by GAIL India.

10. What impact did the Q1 2024-25 results have on investor confidence in GAIL India?

A. The positive financial results and rise in stock price indicate increased investor confidence in GAIL India’s future prospects.

GAIL India Q1 results 2024-25

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