The disappointment with the July-September quarter (second quarter, or Q2) performance of India’s largest gas transmission and trading company, GAIL (India), added to the already soft Street sentiment. The stock, which has slipped from Rs 180 levels in June, was down more than 5 per cent and closed at Rs 123.80 on Wednesday.
Even though GAIL’s performance on the volume front remained decent in Q2, its soft operating performance disappointed investors. The one-offs in its largest gas trading/marketing and transmission segments, coupled with weak profitability of the liquefied petroleum gas (LPG) and liquid hydrocarbon segments, resulted in a lower-than-expected operating performance.
