GAIL (India) Limited

Ladies and gentlemen, good day and welcome to GAIL India Limited Q2 FY27 Earnings Conference Call hosted by Phillip Capital. As a reminder, all participants will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference has been recorded. I would now hand the conference over to Mr. Nitin Tiwari from Phillip Capital. Thank you, and over to you, sir.

Thank you, Muskaan. Good day, ladies and gentlemen. Best wishes in advance for upcoming festive season. On behalf of Phillip Capital India Limited, I welcome everyone to Yale India Limited's second quarter FY27 earnings call. Today, we have the pleasure of having with us the senior management of Yale, I will now hand over the floor to the management for their opening remarks, which shall be followed by a question and answer session. Over to you, sir.

Thank you, Nitin. Good evening, everyone. It is always a pleasure to talk to the investors and analysts, and we are deeply thankful for your continued trust and engagement with GATE. The company has declared its results for the U2 FY26-27 today, which you must have seen by now. I will talk about highlights, business overview, outlook, status of capital expenditure, and then we will take your questions. I will start with key business highlights for the quarter. in the category of gas transporter of the year and health and safety. Gale recorded is the highest ever natural gas transmission of around 148 mmCMD on 21st September 26th. Quarter 2 of April 26-27 was another quarter of robust and resilient performance. Even as a challenging time continued, the base APR crisis has now gone on for over eight months and the company volume from the Middle East demanded disturbed. This was partly obstructed through portfolio flexibility and spot sourcing. Gale's diversified portfolio again proved to be a key strength in navigating the quarter effectively. Gas price continue to be volatile and quite high. This is around $30 to $32 per MMBTU. Throughout this crisis, our teams have been resilient and agile and have kept the win in motion. Even as the times remained challenging, as a company, our prime focus has been to meet our customers' requirements so that they are not left dry run. Our trading arm in Singapore, GGSPS, supported gains in the sourcing export volume from time to time, and we could prioritize supply to our customers. The company continues to focus on operational efficiency and on creating sustainable value for our stakeholders. PVT and PAT during the quarter stood at 5838 crores and 4650 crores respectively, almost in line with the previous quarter. For half year, this financial year, PVT and PAT stood at 11611 crores and 8943 crores respectively, which is a growth of more than 116% as compared to the H1 of the previous financial year. Movinging to the segment wise, starting from the natural gas transmission, natural gas transmission volume for Q2 FY27 stood at 130.10 mmHgMd as engaged 122.36 mmHgMd in the previous quarter, an increase of about 6.3% in line with the recovery in the gas consumption in the country. During the quarter, we also recorded our highest river transmission volume of 147.55 mmHgMd on 21st September 26th. Overall natural gas transmission volume for 8 months F by 27 stood at 126.25 mmHgMd. We expect that the natural gas transmission volume for F by 26-27 should be around 126.25 mmHgMd. 127 MMC-MD in the prevailing circumstances. Moving to the gas marketing, Gill sourced 18 export cargo during the Q2 FY27 as engaged 8 cargo during Q1 FY27. All the cargo were sourced through the GGSPS. Our gas marketing volume for Q2 FY27 stood at 97.23 mmCMD as against 93.82 mmCMD during Q1 FY27, an increase of about 3.6%. Gas consumption in the country was seen returning to the level prevailing before the West Asia crisis. During Q2 FY27, the company earned a natural gas marketing margin of 3,148 crores at PVT level, as against 3,353 crores for Q1 FY27. The Henry Hub linked portfolio continues to generate higher returns on account of sustained high crude prices, whereas gains from the JCC 9-month linked sourcing moderated. In view of above, we update our gas marketing margin guidance to the around 9,000 to 9,500 pros at PVT level for FY26-27. The range assumes continued print volatility and accounts for the disturbed long term supply during the year. Moving to the polymer business. Polymer production during the quarter stood at 204 TMT as against 51 TMT in Q1 FY27 and due to the scale of operation the segment remained around breakeven level during the quarter and is expected to be at the same level during FY27. moving to the LSE and LPG transmission in the LPG transmission segment volume improved by 5% and stood at 1130 TMT as engaged 1077 TMT in Q1 FY27 primarily due to improvement in volume from flow in BSPS overall capacity realization stood at around 98% for the quarter in the LSE segment production increased by 10% to 256 TMD from 232 TMD in Q1 FY27. In view of ongoing crisis, we restarted operation at our Gandhar plant and LSE production of 32 TMD was achieved during Q2 FY26-27. The LSE segment generated a PVT of 442 crores during Q2 FY27 as engaged 772 crores in Q1 FY27 primarily on account of lower price realization by 18,000 per metric ton. Moving to the CGD and Gale Gas business. We have already received PNG-RV nod for transfer of Gale 6 GH to the Gale Gas to have a retail focus approach. Thereafter, Gale Gas Limited will be listed for which necessary action is underway. These 6 CGD have 219 CNGA stations and around 3 lakh built DPNG connections Gale Gas which currently operates 16GH directly and 9GH through its JB has a network of 593 CNGA stations over 8 lakh DPNG connections Quarterly profit of Gale Gas increased by around 50% Gale Gas marketed around 7 mmCMD volume during H1-26-27. Moving to the ongoing projects and capex. During Q2 FY27, Gail incurred a capital outlay of Rs 1,425 crores for H1 FY27. The cumulative capex stood at Rs 7,600 crores. Around Rs 12,900 crores is expected to be incurred towards the capex during the current financial year. This sustained investment underscores our commitment to a strengthened gas infrastructure, enhancing downstream capabilities, advancing clean energy projects, and supporting India's long-term energy transition and energy security objectives. Moving to the segment-wide CAPEX program, pipeline projects , BDPL, remaining section KKBPL phase 2 Gurdaspur-Jammu pipeline and C2-C3 pipeline are scheduled for completion in the current financial year. Vijayapur-Vena pipeline DPPL capacity augmentation are scheduled for completion in the next financial year. JLPL LPG pipeline capacity augmentation is scheduled to be completed in FY28-29. Petrochemicals project The 1250 KTA PTA plant at GMPL is in the advanced stage of commissioning and should commence commercial production very shortly. The 500 KTA PD HPP plant is to be commissioned during the next financial year. CBG Govardhan scheme. The company has one operational CBG plant at Ranchi and others are under construction. Company has registered The company expects the ambient heating system to be Partly commissioned by March 27 and to be fully completed by September 27 post which full 5 mm TPA can be utilized for full year and around 80 cargoes can be served annually. Moving to the renewal segment, Gale remains committed to 80 with net zero target by year 2035 for a scope 1 and a scope 2 emission. we have 155 MW of renewable energy portfolio which includes 180 MW wind and raised solar, additional 908 MW renewable power capacity under construction along with 572 MW of the battery energy storage system. With completion of these projects, Gale will have a renewable energy portfolio of around 1 GB. That concludes my overview of the quarter performance segment outlook and key project. Over to you Nikki.