Revenues increased by 26.1 % y-o-y to Rs. 6233.9 crs in Q4 09. Strong growth in revenues is attributable to strong performance across segments. Revenue from Natural Gas Trading segment increased by 40.2% y-o-y to Rs. 4742.9 crs.

Natural Gas Transmission services segment registered growth in revenue of 17.1% y-o-y to Rs. 651.1 crs. However, revenue from LPG & Liquid Hydrocarbon segment declined by 3.0% y-o-y to Rs. 767.1 crs.

In FY 2009 revenues increased by 31.3% y-o-y to Rs. 24857.5 crs. Growth in revenues is attributable to decent performance across segments. Revenue from Natural Gas Trading segment registered growth of 43.9% to Rs. 18665.0 crs. Revenue from LPG & Liquid Hydrocarbon segment increased by 12.2% y-o-y to Rs. 2964.1 crs. . Whereas revenue from Natural Gas Transmission services segment witnessed growth of 10.4% y-o-y to Rs. 2482.4 crs.

Operating profit declined by 6.9% y-o-y to Rs. 1087.1 crs in Q4 09. Decline in operating profit is attributable to increase in purchase cost. Purchase cost as a %age of revenue increased from
58.5% to 64.8% as a %age of revenue in 4Q 09. On a full year basis, operating profit witnessed a growth of 3.8% to Rs. 4596.7 crs.

Interest expense increased by 56.5% to Rs. 30.6 crs. Whereas Depreciation expense declined by 1.0% Rs. 140.9 crs in Q4 09

In Q4 09, reported PAT declined by 12.8% to Rs. 630.0 crs. Decline in PAT is attributable to poor operational performance and increase in tax rate, tax expense increased to 37.2% as a %age of Profit Before Tax (PBT) in Q4 09 as compared to 34.2% in Q4 08.

On a full year basis, reported PAT registered marginal growth of 1% to Rs. 2790.0 crs in FY 2009

Company reported an EPS of Rs 4.97 for Q4 09 as compared to Rs 5.69 in Q4 08. For FY 2009 the EPS was at Rs. 22.28 as against Rs. 21.94 in FY 2008.

The share is currently trading at PE of 12.9x for FY09.

GAIL continued its excellent physical performance as per its Annual Performance MoU signed with Ministry of Petroleum and Natural Gas. As against an excellent MoU target of Gas Transmission of around 81.5 MMSCMD of natural gas from domestic sources and through LNG route, the Company achieved natural gas transmission of 83.29 MMSCMD. Further, GAIL achieved natural gas sales of 79.06 MMSDMC against MoU target of around 70 MMSCMD. GAIL produced 420 TMT of polymers and 1,401 TMT of LPG and other liquid hydrocarbons against MoU ‘Excellent’ production target of 390 TMT of Polymers (HDPE & LLDPE) and 1,260 TMT of Liquid Hydrocarbons.

The subsidy sharing in domestic LPG and PDS kerosene was Rs. 1,781 crore in FY 2009 (against Rs. 1,314 crore in FY 2008). Without the subsidy element, the PBT would have increased by 16 % to Rs. 5,985 crore and PAT would have increased by 14 % to Rs. 3,991 crore. During FY 2009, natural gas sales have increased by 14% to 79.06 MMSCMD from 69.10 MMSCMD in the previous year. The Gas transmission has increased to 83.29 MMSCMD from 82.10 MMSCMD in the previous year.

In FY 2009, total Liquid Hydrocarbon production including LPG was 1.401 mn MT as compared to previous year’s production of 1.347 mn MT. Production of LPG was 1.088 mn MT during the year against a production of 1.043 mn MT in the last fiscal. The Propane production was 1,52,671 MT in FY 2009 against the previous year’s production of 155,873 MT. The Pentane production was
58,932 MT during FY 2009 as against 73,505 MT produced in FY 2008.

LPG transmission through pipelines was 2.744 mn MT in FY 2009 as against 2.754 mn MT in FY 2008.

In FY 2009, the production of polymers has increased by 9 % to 4.20 lakh MT as against 3.86 lakh MT in the previous year. The polymer sales increased by 8 % to 4.23 lakh MT from 3.91 lakh MT in FY 2008.

GAIL plans to invest Rs. 5,558 crore during FY 2009-10. Of these, Rs. 4,020 crore will be invested in pipeline projects, Rs. 650 crore will be invested in E & P projects, Rs. 285 crore will be invested in Petrochemicals, Rs. 130 crore will be invested in business development, Rs. 250 crore for equity investment in city gas projects, Rs. 200 crore in RGPPL and rest in telecom.

GAIL has set a target of transmitting 94.8 MMSCMD of natural gas from domestic sources and through LNG route during FY 2009-10 under the Annual Memorandum of Understanding signed with Ministry of Petroleum and Natural Gas for performance targets for the Financial Year 2009-10. During the FY 2009-10, to achieve the Excellence in performance, the Company has also targeted for Gas Marketing target of around 83.2 MMSCMD. The MoU also provides for an ‘Excellent’ production target of 400 TMT of Polymers (HDPE & LLDPE) and 1,260 TMT of Liquid Hydrocarbons.