Losses weigh on India Inc Q3 results
India Inc’s aggregate performance in Q3FY22 has been disappointing with revenues growing at just 16.7% year-on-year, the slowest pace in the last four quarters. Moreover, net profits for a sample of 1,685 companies (excluding banks and financials) have fallen by 12% y-o-y thanks to a contraction in operating profit margins of 243 basis points y-o-y and a 24% y-o-y jump in interest costs. Also, more companies have reported losses or a year-on-year drop in profits for the quarter than in December 2021.
Except for banks, IT services and automobiles, corporate earnings growth could remain subdued in FY24 as the economy is poised to decelerate sharply. With a few days to go before the end of earnings season, analysts at Jefferies noted that of the 100 companies they analysed for Q3FY23, 40% had reported numbers that were below estimates. Much like in FY23, earnings growth is expected to be dominated by banks and financials in the coming year too
India's GAIL explores up to 26% equity stake in U.S. LNG projects
India’s largest gas distributor GAIL (India) Ltd (GAIL.NS) is looking to buy an equity stake of up to 26% in a liquefied natural gas (LNG) liquefaction plant or project in the United States, according to a document issued by the company.
GAIL had run into supply disruptions last year after Russia-owned Gazprom Marketing and Trading (GMTS) failed to deliver some LNG cargoes, following western sanctions on Moscow over its invasion of Ukraine
The company is, either directly or through its affiliates, “exploring the opportunity” to buy equity from an existing or post-commissioning of a proposed LNG liquefaction plant or project in the U.S., the document dated Feb. 16 said.
It did not say how much the Indian gas distributor had earmarked for any possible deal.
“In addition, GAIL, directly or through any of its affiliates, is interested to source 1 million tonnes per annum LNG from the LNG liquefaction plant or project on a free-on-board basis for a period of 15 years on mutually acceptable terms and conditions,” it said.
The document added that the LNG supply contract period may be extended further by 5 or 10 years on a mutual basis, and that supplies are to commence tentatively from the last quarter of 2026.
The last date for interested companies to submit their bids to GAIL is March 10, the document said.
GAIL is looking for long-term gas import deals to make up for its disrupted supplies and is in talks with Abu Dhabi National Oil Co (ADNOC) and other parties to source gas to meet local demand, GAIL’s head of finance said in January