GAIL India is expected to report a 40.4 percent decline (quarter-on-quarter) in the third quarter profit at Rs 776.8 crore impacted by weak operating income, according to a CNBC-TV18 poll.
Sharp fall in LPG, liquid hydrocarbons and petchem realisations may hurt earnings, say analysts, adding gas transmission volumes are expected to recover Q-o-Q to 94 mmcmd as Q2 had Cauvery basin outage.
Total income of the state-run gas transmission company is seen rising 1.4 percent to Rs 14,333.1 crore during October-December quarter from Rs 14,129.7 crore in previous quarter.
Operating profit may fall 36.8 percent sequentially to Rs 1,278.2 crore and margin may plunge 540 basis points to 8.9 percent in the quarter ended December 2014.
Analysts assume total subsidy sharing burden of Rs 800 crore, of which Rs 500 crore could be an adjustment for Q2.
Key issues to watch out for are gas trading margins Q-o-Q, subsidy sharing, profitability in gas trading business and cost of natural gas for consumption in LPG and petrochemicals.
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