A leading natural gas stock rose 2 percent to Rs.243.95 per share after Prime Minister Narendra Modi inaugurated a Compressed Bio-Gas plant in Ranchi. This development underscores the government’s commitment to advancing sustainable energy solutions.
Share Price Variation
In Thursday’s trading session, the share price of GAIL (Gas Authority Of India) Limited reached an intra-day high of Rs.243.95 per share from its previous close of Rs.239.70 apiece, gaining around 1.7 percent. The shares have retreated since then and currently trading at Rs.241.60 per share.
Reason for the Rise
Hon’ble Prime Minister Shri Narendra Modi today inaugurated GAIL (India) Limited’s Compressed Bio Gas (CBG) plant in Ranchi, Jharkhand, through a virtual ceremony at Vigyan Bhawan, New Delhi, marking Swachh Bharat Diwas, 2024.
The plant, with an investment of Rs.26 crore, will convert the organic fraction of Municipal Solid Waste (MSW) into CBG, processing 150 TPD and producing 5 Tonnes Per Day (TPD).
The facility aims to reduce approximately 4,950 tonnes of CO2 equivalent emissions annually, replace about 21,71,052 Standard Cubic Meters (SCM) of natural gas each year, and save around $8,40,093 in foreign exchange.
Shri Sanjay Seth, Minister of State for Defence, praised GAIL’s role in enhancing green initiatives and the Government of India’s efforts for a cleaner environment. The CBG Plant represents a significant step in addressing waste management and promoting renewable energy in the region.
Order Book
GAIL is advancing multiple projects, including the PDH-PP at Usar with a 500 KTPA capacity, 69.5 percent completed, and expected to begin commercial production by October 2025. The Polypropylene Plant at Pata, with a 60 KTPA capacity, is 87.4 percent complete, targeting completion within FY25.
The IPA project at Usar will conclude 24 months after licenser selection, which is ongoing. GAIL has rebranded JBF Petrochemicals as GAIL Mangalore Petrochemicals, expecting its 1,250 KTPA capacity plant to be operational by June 2025.
Capital Expenditure
GAIL’s Capex (Capital Expenditure) for Q1FY25 amounted to Rs.1,659 crore, with the total projected Capex for FY25 and FY26 estimated at Rs.11,450 crore and Rs.10,129 crore, respectively.
Financials
In the latest financial update, the company reported net sales of Rs.34,738 crore for Q1 FY25, reflecting a 6 percent increase from Rs.32,789 crore in Q1 FY24. Net profit surged to Rs.3,183 crore, an impressive 78 percent rise from Rs.1,793 crore in the same period last year.
Company Profile
GAIL (India) Limited is an India-based natural gas processing and distribution company, with segments including Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Liquid Hydrocarbons, and other segments.
Written by – Siddesh S Raskar
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