Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the Oil & Gas sector. The brokerage house expects GAIL to report a 14.3 percent degrowth quarter-on-quarter (growth of 55.5 percent year-on-year) in net profit at Rs 659.5 crore.Sales are expected to dcrease by 1.8 percent Q-o-Q (down 8.8 percent Y-o-Y) to Rs 11413 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 18.4 percent Q-o-Q (up 32.7 percent Y-o-Y) to Rs 1323.9 crore.Motilal Oswal's report on GAILWe expect GAIL to report a PAT of Rs 6.6 billion (up 55.5 percent Y-o-Y and down 14.3 percent Q-o-Q). We model nil subsidy sharing for GAIL in 1QFY17 (v/s nil in 1QFY16 and 4QFY16).Segmental EBIT (pre-subsidy) is expected to be Rs 10.8 billion, up 25.7 percent Y-o-Y and flat Q-o-Q. The Y-o-Y increase would be driven by improved profitability in gas transmission segment as a result of tariff increases in KG basin and Cauvery basin pipelines and petrochemicals turning profitable. However, gas trading profits can impact the 1Q reported results.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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