GAIL jumps 3% on expected earnings boost by unified gas tariff

NEW DELHI: Shares of GAIL climbed over 3 per cent on Tuesday after reports that the proposal by gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) to implement the 'unified or pooling' method for computing gas transmission tariffs could boost earnings at GAIL.

Following the development, the stock gained 3.46 per cent to close at Rs 433.60 on BSE. It opened at Rs 425.10 and touched an intraday high and low of Rs 435.50 and Rs 422.55 respectively.

According to Citi, if the unified tariff is applied to recalculate GAIL's last fiscal year operating profit and net profit, it will show gains of 23 per cent and 30 per cent, respectively.

Promoters held 54.88 per cent stake in the company as of June 2017.

For the quarter ended June 30, 2017, GAIL reported total revenue of Rs 11,570.38 crore and net profit stood at Rs 1,025.64 crore.

The scrip touched its fresh 52-week high of Rs 435.50 on October 3, 2017 and its 52-week low of Rs 272.25 on September 30, 2016.