GAIL =GAS AUTHORITY OF INDIA LTD = RESULTS FOR Q2 FY 2011-12 = IMPRESSIVE PERFORMANCE = PROMISING FUTURE = Q2 NPT UP 19% YOY

GAIL (India) Limited

RESULTS FOR  Q2 FY 2011-2012

Q/E SEP,2011

Q2 PAT up 19%, Turnover up 20%

First half PAT up 15%, Turnover up 22%

Gas Authority of India Limited has been a consistent performer in the last 5 quarters. In Q2 FY 12 (Sept,2011) also, it has improved its performance with the same consistency.

Net Sales has gone up to Rs.9699.02 cr in Q2 FY 12 – from Rs.8867.38 in the preceding quarter of Q1 FY 12 (up by 9.38%) – and from Rs.8104.09 cr in the corresponding Quarter of Q2 FY 11 (up by 19.68%).

Raw Materials consumption has gone up to Rs.631.57 cr in Q2 FY 12 – from Rs.578.77 Cr in Q1 FY 12 (Up by 9.12%) and  from Rs.493.76 cr in Q2 FY 11 (Up by 27.91%).

Traded Goods has gone up to Rs.6592.64 cr in Q2 FY 12 – from Rs.6211.35 cr in Q1 FY 12 (Up by 6.14%) – and from Rs.5574.10 Cr in Q2 FY 11 (Up by 18.27%).

Total Expenditure has gone up to Rs.8251.62 cr in Q2 FY 12 – from Rs.7489.95 cr in Q1 FY 12 (Up by 10.17%) – and from Rs.6833.79 Cr in Q2 FY 11 (Up by 20.75% in Q2 FY 11). As we can see, Expenses have gone up more than proportionately, compared to Sales.

Profit from Operations has gone up to Rs.1474.78 cr in Q2 FY 12 – from Rs.1399.05 cr (up by 5.41%) – and from Rs.1294.43 cr in Q1 FY 12 (Up by 13.93%).

Profit before tax       has gone up to Rs.1568.16 cr inQ2 FY 12 – from Rs.1442.91 Cr in Q1 FY 12 (Up by        8.68%) – and from Rs.1432.57 Cr in Q2 FY 11 (up by 9.46%).

Net Profit  stands at Rs.1094.41 Cr in Q2 FY 12 – compared to Rs.984.67 Cr in Q1 FY 12 (Up by    11.14%) – and compared to Rs.923.55 Cr in Q2 FY 11 (Up by 18.5%).

Basic EPS , on a Face Value of Rs.10 - stands at Rs.8.63 for Q2 FY 12; Rs.7.76 for Q1 FY 12; and Rs.7.28 for Q2 FY 11. Thus, profitability and EPS has been consistently going up indicating consistently improving performance. The annualized EPS could be around Rs.34.5.

Market Price is Rs.381.95 –with the  52 week high price at Rs.537.75 and the  52 week low price  at Rs.365.20.

On this basis, the Price Earnings Ratio works out to 11.07.

Paid Up Equity is very huge at Rs.1268.48 and Public holding in it is 41.82%.

The consolidated Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 3510665 lacs for year ending on 31-MAR-2011 against Rs. 2703530 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 402097 lacs for the year ending on 31-MAR-2011 against Rs. 332783 lacs for the year ending on 31-MAR-2010. This is an impressive improvement YOY.

GAIL is in an attractive sector which is bound to move up in the profitability chain.

The earnings of GAIL are likely to maintain the present trend of moving up gradually and certainly – if not in attractive, big leaps. Its plans of expansion are very impressive and scope for expansion is very vast in a very lucretive sector.

Its PE Ratio is also reasonable. Hence, Medium to long term investors can certainly keep this in their portfolio.

ANNOUNCEMENTS BY GAIL

26-12-2011    GAIL gets Top ICSI National award for Excellence in Corporate Governance

12-12-2011    GAIL and Cheniere, USA sign 20-year LNG Sale and Purchase Agreement

08-12-2011    GAIL ties up US $ 100 million loan from Bank of Tokyo

05-12-2011    GAIL is world's no. 1 company in Downstream Operation

02-11-2011    GAIL opens office at Singapore

28-10-2011    GAIL second quarter PAT up 19%, Turnover up 20% GAIL first half PAT up 15%, Turnover up 22%

24-10-2011    standalone Results for the quarter ended on 30-SEP-2011 as follows: Net Sales of Rs. 969902 lacs for quarter ending on 30-SEP-2011 against Rs. 810409 lacs for the quarter ending on 30-SEP-2010. Net Profit / (Loss) of Rs. 109441 lacs for the quarter ending on 30-SEP-2011 against Rs. 92355 lacs for the quarter ending on 30-SEP-2010.

29-09-2011     a wholly owned subsidiary company of GAIL (India) Limited has been formed with the name of "GAIL GLOBAL (USA) Inc."

29-09-2011    GAIL Ties up with with Carrizo of U.S.A.(Acquires Shale Gas Assets in Texas)

27-07-2011    GAIL Q1 Turnover increases 25% to Rs. 8,867 crore, Net Profit increases 11% to Rs. 985 crore

27-07-2011    standalone Results for the quarter ended on 30-JUN-2011 as follows: Net Sales of Rs. 886738 lacs for quarter ending on 30-JUN-2011 against Rs. 709595 lacs for the quarter ending on 30-JUN-2010. Net Profit / (Loss) of Rs. 98467 lacs for the quarter ending on 30-JUN-2011 against Rs. 88688 lacs for the quarter ending on 30-JUN-2010.

19-07-2011    GAIL gets Award for Excellence in Cost Management from ICWAI

27-06-2011    GAIL UTKARSH - 12 crack IIT / IIT (EML), 3 qualify for ISRO, 10 qualify for AIEEE and 26 for UPTU - GAIL to increase number for free coaching to 100 students

20-06-2011    GAIL and UJVNL join hands to set up Gas based power generation in Uttarakhand

09-06-2011    KSIIDC and GAIL (India) Limited sign Joint Venture Agreement - A step towards Piped gas to homes and CNG driven vehicles in Bangalore City

27-05-2011    Gail Utkarsh Superb 60, Kanpur; Gail sends 8 to IIT and 3 more qualify in ISRO Entrance

23-05-2011    GAIL's Turnover increases 30% to Rs. 32,459 crore in FY 2010-11 - Net Profit up 13% at Rs. 3561 crore - Board recommends total dividend of 75% on paid up capital

23-05-2011    consolidated Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 3510665 lacs for year ending on 31-MAR-2011 against Rs. 2703530 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 402097 lacs for the year ending on 31-MAR-2011 against Rs. 332783 lacs for the year ending on 31-MAR-2010.

23-05-2011    standalone Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 3245864 lacs for year ending on 31-MAR-2011 against Rs. 2499640 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 356113 lacs for the year ending on 31-MAR-2011 against Rs. 313984 lacs for the year ending on 31-MAR-2010.

21-04-2011    GAIL conferred with ''Outstanding PSU of the Year'' Award

11-04-2011    Shri S. Jaipal Reddy dedicates GAIL's Chainsa-Sultanpur-Neemrana pipeline to the Nation

04-04-2011    GAIL Gas Limited and Vadodara Mahanagar Sewa Sadan set up Joint Venture for City Gas Distribution

01-04-2011    Shri R P N Singh launches Asia's First Integrated Gas Management System at GAIL

24-03-2011    GAIL targets for over 118 MMSCMD Gas Transmission in FY 2011-12 Signs Annual MoU with MoP&NG

RESULTS TABLE

GAIL	30-Sep-11	30-Jun-11	% DIF	30-Sep-10	% DIF
Net Sales	969902	886738	9.38	810409	19.68
Other Operating Income	2738	2162	26.64	2413	13.47
Increase in SIT / WIP	-9120	-18750	-51.4	-5545	64.47
Raw Materials	63157	57877	9.12	49376	27.91
Traded Goods	659264	621135	6.14	557410	18.27
Employees Cost	17787	17822	-0.2	15376	15.68
Depreciation	20076	17817	12.68	16259	23.48
Other Expenditure	73998	53094	39.37	50503	46.52
Total Expenditure	825162	748995	10.17	683379	20.75
Profit from Operations	147478	139905	5.41	129443	13.93
Other Income	11600	6465	79.43	14988	-22.6
Interest	2262	2079	8.8	1174	92.67
Profit before tax	156816	144291	8.68	143257	9.46
Tax expense	47375	45824	3.38	50902	-6.93
Net Profit	109441	98467	11.14	92355	18.5
Face Value (In Rs	10	10	0	10	0
Paid Up Equity	126848	126848	0	126848	0
Basic EPS	8.63	7.76	11.21	7.28	18.54
Public holding (%)	41.82	41.88	-0.14	41.74	0.19

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