​GAIL India falls over 6% post Q3 results; top Sensex loser

NEW DELHI: GAIL India Ltd plunged as much as 6.5 per cent in trade on Monday, after the state-owned gas utility company posted a 64 per cent slump in its December quarter net profit as it could not sell imported gas contracted at higher price.

Net profit in October-December at Rs 604.08 crore was 64 per cent lower compared to Rs 1,679.4 crore in the same period a year ago, the company said in a statement.

At 09:40 a.m.; GAIL was trading 3.4 per cent lower at Rs 404.45, and was also the top percentage Sensex loser among the 30 index constituents. It hit a low of Rs 392.30 and a high of Rs 404.65 in trade today.

Total income of the company also dipped 6.9% to Rs 15,109.7 crore during the quarter as compared to Rs 16,246.7 crore in the same quarter last fiscal.

Reacting to the results, CLSA sees further inventory write downs on falling crude and a recovery in core business remains elusive.

The Asia focused brokers maintain sell rating on GAIL, but slashed its target price to Rs 360 from Rs 375 earlier. GAIL is also in CLSA's Asia utilities conviction Sell list.