State-run gas transmission company GAIL is expected to continue its earnings revival in the quarter ended June 2016 with the profit & revenue rising 4 percent each to Rs 802 crore and Rs 12,152 crore on sequential basis, respectively.
Gain on its stake sale in the Mahanagar Gas IPO may also boost the bottomline.
According to average of estimates of analysts polled by CNBC-TV18, operating profit may increase 19 percent to Rs 1,457 crore and margin may expand 160 basis points to 12 percent compared with preceding quarter.
Analysts expect the company can surprise with its petrochemical business. While Pata-II ramp-up was slow, petchem may return to profit due to lower gas costs and higher polymer prices, they say, adding transmission may benefit from revised tariffs for its KG/Cauvery networks.
Liquid hydrocarbon segment may benefit from a lower domestic gas price. Analysts expect modest QoQ increase in gas transmission volumes to 96.6 million cubic metre per day versus 95.3 mcm per day in Q4FY16 and 87.5 mcm per day in Q1FY16.
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