Reference Model

GAIL India Limited

Prepared By: Disha Vyas, Distance learning, Mumbai

http://proschoolonline.com
Email ID :mumbai@proschoolonline.com
Mumbai
IMS Proschool Pvt Ltd,
Maharashtra High School Complex,
Principal N.M Kale Marg, Off Gokhale Rd,
Dadar (W), Mumbai 400028
Tel. No. :022-65285393/94
+91 9372895050

Directions

GAIL has successfully evolved into a major integrated gas company with presence across the natural gas value chain and with
company is in great demand in the investment market. This gave us the opportunity to guide our student to come out with a fina
exercises help the student at IMS Proschool to hone their financial modeling skills.

This model is being developed by a financial modeling student at IMS Proschool. This is provided as reference model and is fo
the objective of the reference model, the formulas and linkages of the model are kept intact.

IMS Proschool provides certificate programs in Financial Modeling. The program grooms the candidates for entry level jobs in t
analysis and modeling skills. The program aims to impart the necessary skills required to perform the role of a Financial Resea
with the practical skill sets required to perform financial analysis, modeling and valuation through Excel.
please contact the address furnished below. You can also email us at the below mentioned email-id.

s the natural gas value chain and with global footprints. A financial model of such a
ide our student to come out with a financial model on the company. These

provided as reference model and is for information purpose only. Keeping in view
act.

the candidates for entry level jobs in the finance sector which require financial
perform the role of a Financial Research Analyst. The program equips students
through Excel.
For more details,
ed email-id.

IMS Proschool Pvt Ltd,

Maharashtra High School Complex,
Principal N.M Kale Marg, Off Gokhale Rd,
Dadar (W), Mumbai 400028
Tel. No. :022-65285393/94
+91 9372895050

Email ID : mumbai@proschoolonline.com

GAIL (INDIA) LTD.

Company Overview
(Figures in Rs. Millions.)

Company Information

Company Description

Industry

GAIL (India) Limited, is India's flagship

Transmission, Distribution and Marketin
industrialisation, creating a quadrilateral
border gas sourcing points. GAIL is also e

Natural Gas Industry

Sector

Natural Gas Sector

Country

INDIA

Current Market Price

RS.420.65

Ticker

NSE

Market Capitalization ($MM)

5,335,861.0

Relative Index (S&P 500)

(S&P 500)

Year end

Products

31-Mar

Reporting currency

Natural Gas value chain and beyond inc

and Power and Natural Gas related infras

INDIAN (Rs.)

Per Share Data & Key Ratios

(in Rs.crores)

RATIOS

31MAR '06

31MAR '07

31MAR '08

31MAR '09

31MAR '10

2005-06A

2006-07A

2007-08 A

2008-09 A

2009-2010E

EPS BASIC

28.22

30.76

22.02

18.40

EBITDA/sales (%)

19%

22%

17%

18%

Net income/sales (%)

14%

12%

12%

9%

Interest Cover

22.6

EV/Sales

42.5

40.1

56.8

2.25

2.16

EV/EBITDA

13.21

12.08

P/E

19.10

22.86

0.02%

0.02%

P/Sales

Segment revenue breakup for 2009

Natural Gas Trading

183,084

Transmission Services - Natural Gas

25,081
Petrochemicals

27,335

LPG & Liquid Hydrocarbons

29,900
Transmission Services - LPG
3,819
Gailtel

243

Others

5749

Total

275,211

5749
3,819
29,900
27,335

25,081

183,0

27,335

25,081

183,0

Revenue Forecast

2006-07
Natural Gas Trading

2007-08

2008-09

2009-10

2010-11

121198

127476

183084

205054

246064

Transmission Services - Natural

Gas

21155

21966

25081

34862

45321

Petrochemicals

25702

27031

27335

29574

32531

LPG & Liquid Hydrocarbons

21219

26961

29900

29996

35995

Transmission Services - LPG

3440

3893

3819

4358

5012

Gailtel

254

286

243

193

222

Others

5097

5068

5749

402

443

198065

212681

275211

304439

365588

Total

ompany Description

AIL (India) Limited, is India's flagship Natural Gas company, integrating all aspects of the Natural Gas value chain (including Exploration & Producti
ansmission, Distribution and Marketing) and its related services. In a rapidly changing scenario, we are spearheading the move to a new era
dustrialisation, creating a quadrilateral of green energy corridors that connect major consumption centres in India with major gas fields, LNG terminals
rder gas sourcing points. GAIL is also expanding its business to become a player in the International Market.

Products

atural Gas value chain and beyond including Exploration, Production, Transmission, Marketing, Extraction, Processing, Distribution, utilisation including
d Power and Natural Gas related infrastructure, products and services.

31MAR '11

31MAR '12

31MAR '13

31MAR '14

2010-11E

2011-12E

2012-13E

2013-14E

21.14

29.10

35.35

60.67

14%

13%

11%

13%

8%

8%

7%

9%

49.3

80.0

117.6

188.7

1.64

1.21

0.87

0.60

12.12

9.11

7.66

4.56

19.90

14.46

11.90

6.93

0.01%

0.01%

0.01%

0.0047%

Natural Gas Trading

5749
3,819
29,900

Transmission Services Natural Gas

27,335

Petrochemicals
LPG & Liquid Hydrocarbons

25,081
183,084

Transmission Services - LPG

Gailtel
Others

27,335

Petrochemicals
LPG & Liquid Hydrocarbons

25,081
183,084

Transmission Services - LPG

Gailtel
Others

2011-12
295277
61183
36110
41395
5814
244
496
440519

ding Exploration & Production, Processing,

g the move to a new era of clean fuel
r gas fields, LNG terminals and other cross

bution, utilisation including Petrochemicals

GAIL (INDIA) LTD.

Segment Revenue Model
2006-07

(Figures in Rs. Millions.)

APR - JUN

JUL - SEPT

OCT - DEC

JAN - MAR

Q1 2006

Q2 2006

Q3 2006

Q4 2007

Segment Revenues
Natural Gas Trading
Transmission Services - Natural Gas
Petrochemicals
LPG & Liquid Hydrocarbons
Transmission Services - LPG
Gailtel
Others
Total
Less: Inter Segment Revenue
Net sales/income from Operations

30,767

29,237

31,494

5,009
5,503
6,406
715
51
742

4,972
5,456
4,219
816
63
1,607

6,413
7,306
6,261
994
71
1,764

49,192

46369

54,302

6,519

6,513

7,279

42,673

39,856

47,024

INCOME STATEMENT MODEL

(Figures in Rs. Crores.)

29,701
4,762
7,437
4,332
915
69
984
48,200
6,844
41,356

FY 2006-07
Q1

Q2

APR-JUN

JUL-SEPT

6M

Q3
OCT-DEC

Net Sales/ Income from Operations

473034

435830

908864

510622

Total Expenditure

405447

347032

752479

412443

13288

-27170

-13882

-5883

356206

329333

685539

361270

5513

9047

14560

6509

30440

35822

66262

50547

67587

88798

156385

98179

14

20

17

19

2880

2912

5792

2705

14081

14357

28438

14387

50626

71529

122155

81087

8006

16737

24743

18463

58632

88266

146898

99550

Profit Before Tax

58632

88266

146898

99550

Current Tax

-26000

13539

-12461

-21238

Deferred Tax

Fringe Benefit Tax

(Increase) / Decrease In Stock In Trade & WIP

Consumption of Raw Materials
Employees Cost
Other Expenditure
Consumption of Materials/Purchase
OPBDIT
OP Margin
Interest
Depreciation
PBT From Operations
Other Income
PBT & Exceptional Item
Exceptional Item

Profit After Tax

84632

74727

159359

120788

NET PROFIT

84632

74727

159359

120788

NO.OF EQUITY SHARES

8457

8457

8457

8457

EPS Basic

0.10

0.22

0.16

0.15

MAR '06

MAR '07

MAR '08

MAR '09

2005-06A

2006-07A

2007-08 A

2008-09 A

4496
1784
1917

2660
905
1338

4473
2256
1266
3210

3456
2568
1200
4060

Other Selected Items and Ratios

Cash and Bank balances

CAPEX
Total Debt
Inventory Turnover

Valuation Metrics
Gross Profit Margin(%)
EBITDA Margin (%)
Net Profit Margin (%)
Interest Cover

18.68
123%
14.87
22.62

21.93
128%
14.45
42.46

17.01
120%
11.75
40.05

2007-08

2008-09

31st MAR '07

APR - JUN

JUL - SEPT

OCT - DEC

JAN - MAR

31st MAR '07

APR - JUN

JUL - SEPT

2006-07A

Q1 2007

Q2 2007

Q3 2007

Q4 2008

2007-08A

Q1 2008

Q2 2008

121,198
21,155
25,702
21,219
3,440
254
5,097

30,067
4,895
7,784
6,752
923
67
806

32,487
5,289
6,402
7,033
896
76
1,636

31120.1
6,022
5,378
5,278
996
70
1,571

33,802
5,762
7,467
7,898
1,079
72
1,055

198,063
27,155

51,293
6,452

53,820
6,725

50435
5,604

57,133
6,784

44,841

47,095

170,908

44,832

50,350

127,476
21,966
27,031
26,961
3,893
286
5,068

41192.8
6,214
8,008
7,997
855
65
1,231

44953.8
6,215
6,287
10,902
906
65
1,929

212,681
8,245

65563.3
7,109

71258.8
7,677

204,436

58,455

63,582

-07
9M

Q4

FY 2007-08

FY 2007

JAN-MAR

Q1

Q2

APR-JUN

JUL-SEPT

6M

Q3

9M

OCT-DEC

1419486

388340

1604718

424568

452890

877458

429833

1307291

1164922

359317

1304989

171663

365059

39178

342607

879329

-19765

28380

-7526

322

-563

-241

5466

5225

1046809

278947

1121412

129390

45029

174419

47246

221665

21069

8163

29232

6876

8239

15115

9854

24969

116809

43827

161871

35075

58378

93453

38138

131591

235285

253976

253976

241903

495879

0
254564

29023

299729

252905

87831

390655

87226

427962

18

19

60

19

91

20

33

8497

2211

10708

2040

2009

4049

1955

6004

42825

14713

57538

14070

14916

28986

13869

42855

203242

12099

231483

236795

70906

357620

71402

379103

43206

11289

54495

9127

18060

27187

18482

45669

246448

23388

285978

245922

88966

384807

89884

424772

5540

246448

28928

285978

245922

88966

384807

89884

424772

-33699

13466

47311

27547

29708

57255

24150

81405

514

1684

2198

3463

5661

-1404

320

-1084

139

-945

280147

15462

238667

219265

57254

326438

62132

338651

280147

15462

238667

219265

57254

326438

62132

338651

8457

8457

8457

8457

8457

8457

8457

8457

0.15

0.73

0.23

0.04

0.32

0.08

0.30

0.13

MAR '10

MAR '11

MAR '12

MAR '13

MAR '14

2009-2010E

2010-11E

2011-12E

2012-13E

2013-14E

3501
115
1186
4007

3658
3401
1172
5063

3699
1246
1154
6564

3734
2577
1142
8803

3800

17.88
122%
9.44
56.77

13.50
116%
8.22
49.33

13.30
115%
8.38
79.99

11.30
113%
7.27
117.58

1136
12279

13.10
115%
8.61
188.74

BSE Q RES

2008-09

2009-10

OCT - DEC

JAN - MAR

31st MAR '07

APR - JUN

JUL - SEPT

OCT - DEC

JAN - MAR

Q3 2008

Q4 2009

2008-09A

Q1 2009

Q2 2009

Q3 2009

Q4 2010

49507.4
6,141
6,227
3,330
1,065
64
2,526

47429.6
6511
6,813
7,671
992
49
63

183084
25,081
27,335
29,900
3,819
243
5,749

68859.6
8,392

69529.6
8,487

275,211
31,663

60,468

61,043

243,548

46417
7331.5
6,226
6,839
1,057
38
100

49691
8,430
6,157
5,151
1,029
34
142

45274
8,528
7,927
7,103
1,161
29
137

63671
10,573
9,265
10,904
1,111
93
23

68009

70634

70158

95,638.13

(7,795)

(8,612)

(8,279)

60,214

62,022

61,878

A
Q4

35,175
60,463

FY 2008-09

FY 2008

JAN-MAR

Q1

Q2

APR-JUN

JUL-SEPT

6M

Q3

9M

OCT-DEC

493529

1800820

573071

617261

1190332

581602

1771934

377533

1405896

433128

482283

915411

554568

1469979

-8213

-2988

2858

-7349

-4491

6256

1765

36070

1191550

49620

55114

104734

52395

157129

22032

47001

8663

11802

20465

32256

52721

38742

170333

39182

47979

99658

46490

146148

288902

332805

362240

695045

417171

1112216

115996

394924

139943

134978

274921

27034

301955

24

22

24

22

23

17

1953

7957

1902

1890

3792

1851

5643

14247

57102

14296

13858

28154

13739

41893

99796

329865

123745

119230

242975

11444

254419

9966

55635

11477

4333

15810

437

16247

109762

385500

135222

123563

258785

11881

270666

109762

385500

135222

123563

258785

11881

270666

43093

125354

44394

48928.00

93322

7561

100883

-5760

999

-1156

-157

1372

1215

191

142

169

311

254

565

72238

260146

89687

75622

165309

2694

168003

72238

260146

89687

75622

165309

2694

168003

8457

8457

8457

8457

8457

12685

12685

0.14

0.21

0.13

0.06

0.10

0.16

0.10

31st MAR '10

31st MAR '11

31st MAR '12

31st MAR '13

31st MAR '14

2009-10E

2010-11E

2011-12E

2012-13E

2013-14E

205054

246064

295277

369097

479825

34,862

45321
32531
35995
5012
222

61183
36110
41395
5814
244

82597
40443
49674
6860
273

113984
46105
60602
8232
309

443

496

555

633

304439

365588

440519

549499

709690

10,489

26223

62935

151043

370055

377584

398456

339635

29,574
29,996
4358
193
402

293,950

339,365

A
Q4

FY 2009-10

FY 2009

JAN-MAR

Q1

Q2

APR-JUN

JUL-SEPT

6M

Q3

9M

OCT-DEC

623395

2377595

604133

622434

1226567

620571

1847138

519212

1973164

495592

518488

1014080

493520

1507600

2265

500

3839

1354

5193

849

6042

55702

212831

51644

58766

110410

55557

165967

4946

57667

13201

12685

25886

25387

51273

60476

194127

48476

44481

92957

40451

133408

395823

1508039

378432

401202

779634

371276

1150910

104183

404431

108541

103946

212487

127051

339538

17

17

18

17

17

20

18

3057

8700

1792

1785

3577

1422

4999

14098

55991

14041

14162

28203

14091

42294

87028

339740

92708

87999

180707

111538

292245

12964

79662

1991

2216

4207

1787

5994

99992

419402

94699

90215

184914

113325

298239

0.00

0.00

0.00

99992

419402

94699

90215

184914

113325

298239

37752

140032

33982

30940

64922

37111

102033

591

-865

412

-453

2720

2267

208

61441

279370

61582

58863

120445

73494

193939

61441

279370

61582

58863

120445

73494

193939

12685

12685

12685

12685

12685

12685

12685

0.21

0.29

0.03

0.04

0.03

0.02

0.03

E
Q4

FY 2010-11 E

FY 2011-12 E

FY 2012-13 E

FY 2013-14 E

APR 1,2011-MAR
31,2012
4405350

APR 1,2012-MAR
31,2013
6167490

APR 1,2013-MAR
31,2014
8942860

2822687

3819437

5470563

7771344

FY 2010

625000

APR 1,2010-MAR
31,2011
2472138
3263222

522430

2030030

1000.00

7042.00

48948

74891

104847

169914

56280.00

222247.00

293690

396481

555074

804857

40150

91423

195793

308374

431724

626000

50000

183408

261058

396481

555074

804857

375000

1525910

2023198

2643210

3823844

5365716

102570

442108

440535

585913

696927

1171516

16

18

14

13

11

13

1790

6789

7765

6594

5423

5889

14397

56691

57516

58466

59266

60050

86383

378628

375254

520853

632238

1105577

2000.00

7994.00

25000

30000

37000

43000

88383

386622

400254

550853

669238

1148577

JAN-MAR

88383

386622

400254

550853

669238

1148577

46236

148269

132084

181781

220849

379030

2720

4987

0.00

39427

233366

268170

369071

448389

769547

39427

233366

268170

369071

448389

769547

12685

12685

12685

12685

12685

12685

0.05

0.03

0.09

0.08

0.08

0.06

GAIL (INDIA) LTD.

Segment Revenue Model
2006-07

( Figures in Rs. Millions.)

APR - JUN JUL - SEPT OCT - DEC JAN - MAR

Q1 2006

Q2 2006

Q3 2006

Q4 2007

Segment Revenues
Natural Gas Trading
Transmission Services - Natural Gas
Petrochemicals
LPG & Liquid Hydrocarbons
Transmission Services - LPG
Gailtel
Others
Total
Less: Inter Segment Revenue
Net sales/income from Operations

30,767
5,009
5,503
6,406
715
51
742
49,192
6,519
42,673

29,237
4,972
5,456
4,219
816
63
1,607
46369
6,513
39,856

31,494
6,413
7,306
6,261
994
71
1,764
54,302
7,279
47,024

29,701
4,762
7,437
4,332
915
69
984
48,200
6,844
41,356

6135
32948
17425

5634
45477
27745

4924
27674
30076

Y/Y (%) Growth

Natural Gas Trading
Transmission Services - Natural Gas
Petrochemicals
LPG & Liquid Hydrocarbons
Transmission Services - LPG
Gailtel
Others
Total
Less: Inter Segment Revenue
Net sales/income from Operations

Segment Revenue As % of Total

Revenues
Natural Gas Trading
Transmission Services - Natural Gas
Petrochemicals
LPG & Liquid Hydrocarbons
Transmission Services - LPG
Gailtel
Others
Total
Less: Inter Segment Revenue
Net sales/income from Operations

Segment Results
Natural Gas Trading
Transmission Services - Natural Gas

48171

Petrochemicals

20205

LPG & Liquid Hydrocarbons

Transmission Services - LPG
Gailtel
Others
Total
Interest
Other un-allocable expenditure net off un-allocable income
Total Profit Before Tax

13940
3681
-3
0
85994
2880

-5454
4490
41
0
55585
2912

9048
6026
5
0
93935
2705

-7319
4866
54
0
60275
2211

-2094
85208

-5706
58379

3446
87784

3457
54607

314687
194855
113110
0
0
109001
3055
734708
0
734708

0
193493
100718
348145
0
107365
3078
752799
0
752799

356823
190702
102180
0
0
106716
2934
759355
0
759355

0
191284
89700
370113
0
105095
4745
760937
0
760937

CAPITAL EMPLOYED
Natural Gas Trading
Petrochemicals
LPG & Liquid Hydrocarbons
Transmission Services - Natural Gas
Others
Transmission Services - LPG
Gailtel
Total
Other Unallocable Items
Total

BSE

BSE

2007-08
31st MAR '07
2006-07A

121,198
21,155
25,702
21,219
3,440
254
5,097
198,063
27,155
170,908

16693
106099
75246

2008-09

APR - JUN JUL - SEPT OCT - DEC JAN - MAR

Q1 2007

Q2 2007

Q3 2007

30,067
4,895
7,784
6,752
923
67
806
51,293
6,452

32,487
5,289
6,402
7,033
896
76
1,636
53,820
6,725

31120.1
6,022
5,378
5,278
996
70
1,571
50435
5,604

44,841

47,095

-2.27%
-2.27%
41.45%
5.39%
29.04%
32.09%
8.61%
4.27%
-1.03%
5.08%

BSE

Q4 2008

31st MAR '07

APR - JUN

JUL - SEPT

2007-08A

Q1 2008

Q2 2008

127,476
21,966
27,031
26,961
3,893
286
5,068
212,681
8,245
204,436

41192.8
6,214
8,008
7,997
855
65
1,231
65563.3
7,109

44,832

33,802
5,762
7,467
7,898
1,079
72
1,055
57,133
6,784
50,350

58,455

44953.8
6,215
6,287
10,902
906
65
1,929
71258.8
7,677
63,582

11.12%
6.37%
17.35%
66.70%
9.80%
21.85%
1.81%
16.07%
3.25%
18.16%

-1.19%
-6.10%
-26.39%
-15.70%
0.18%
-0.57%
-10.93%
-7.12%
-23.01%
-4.66%

13.81%
20.99%
0.40%
82.31%
17.93%
3.31%
7.20%
18.53%
-0.88%
21.75%

5.18%
3.84%
5.17%
27.06%
13.18%
12.58%
-0.57%
7.38%
-69.64%
19.62%

37.00%
26.95%
2.88%
18.45%
-7.27%
-2.68%
52.74%
27.82%
10.17%
30.36%

38.38%
17.52%
-1.79%
55.01%
1.10%
-14.40%
17.92%
32.40%
14.16%
35.01%

67.05%
10.92%
17.36%
15.06%
2.06%
0.15%
1.80%
114.39%
14.39%
100.00%

68.98%
11.23%
13.59%
14.93%
1.90%
0.16%
3.47%
114.28%
14.28%
100.00%

69.42%
13.43%
12.00%
11.77%
2.22%
0.16%
3.51%
112.50%
12.50%
100.00%

67.13%
11.44%
14.83%
15.69%
2.14%
0.14%
2.09%
113.47%
13.47%
100.00%

62.35%
10.74%
13.22%
13.19%
1.90%
0.14%
2.48%
104.03%
4.03%
100.00%

70.47%
10.63%
13.70%
13.68%
1.46%
0.11%
2.11%
112.16%
12.16%

70.70%
9.77%
9.89%
17.15%
1.42%
0.10%
3.03%
112.07%
12.07%

100.00%

100.00%

39304

46584

402.3
4141
2288.2

6915
37552
36283

947.5
4337
4395.1

1113.4
3952.7
3287.7

34305

31953

134898.3
104829.2

-3725
15382
100
0
209795
10708

19855
5450
51
0
59661
2040

22338
5212
138
-15250
90975
2009

1252
564.5
8.2
527.7
9183.9
-195.5

35330
6877
40
-11282
111715
1953

78775
18103.5
237.2
-26004.3
310838.9
5806.5

3178.2
467.5
12.7
374.4
13712.4
-190.2

5751
539.4
-46
619.4
15217.6
-189

-897
199984

37
57584

0
88966

0
8988.4

0
109762

37
265300.4

0
-190.2

0
15028.6

671510
770334
405708
718258
0
428177
13812
3007799
0
3007799

457797
182821
101411
0
0
102776
4427
849232
0
849232

520280
183124
108037
0
385851
101090
4335
1302717
0
1302717

0
20330.5
9357.1
52394.8
0
9966.6
406.9
92455.9
41099.5
133555.4

0
200207
103522
541615
380383
98831
3732
1328290
0
1328290

978077
586482.5
322327.1
594009.8
766234
312663.6
12900.9
3572694.9
41099.5
3613794.4

0
18856.4
11581
56944.6
67516.8
9526.5
358.7
164784
0
164784

0
19512.3
11593.5
57307.7
76518.4
9510.3
279
174721.2
0
174721.2

BSE

BSE Q RES

BSE

2008-09

2009-10

OCT - DEC JAN - MAR

Q3 2008

Q4 2009

31st MAR '07

APR - JUN

JUL - SEPT

OCT - DEC

JAN - MAR

31st MAR '10

2008-09A

Q1 2009

Q2 2009

Q3 2009

Q4 2010

2009-10E

49507.4
6,141
6,227
3,330
1,065
64
2,526
68859.6
8,392

47429.6
6511
6,813
7,671
992
49
63
69529.6
8,487

60,468

61,043

183084
25,081
27,335
29,900
3,819
243
5,749
275,211
31,663
243,548

46417
7331.5
6,226
6,839
1,057
38
100

49691
8,430
6,157
5,151
1,029
34
142

45274
8,528
7,927
7,103
1,161
29
137

63671
10,573
9,265
10,904
1,111
92
23
95,639.09

59.08%
1.98%
15.78%
-36.91%
6.97%
-9.67%
60.76%
36.53%
49.75%
34.88%

40.32%
13.01%
-8.75%
-2.87%
-8.03%
-31.52%
-94.05%
21.70%
25.10%
21.24%

43.62%
14.18%
1.12%
10.90%
-1.91%
-14.78%
13.44%
29.40%
284.03%
19.13%

12.68%
17.99%
-22.26%
-14.48%
23.60%
-42.11%
-91.84%
3.73%
-209.65%
3.01%

10.54%
35.63%
-2.08%
-52.75%
13.62%
-47.71%
-92.63%
-0.88%
-212.18%
-2.45%

-8.55%
38.87%
27.31%
113.30%
8.99%
-55.12%
-94.58%
1.89%
-198.66%
2.33%

34.24%
62.39%
35.98%
42.13%
11.96%
88.26%
-63.12%
37.55%
314.48%
-0.95%

12.00%
39.00%
8.19%
0.32%
14.12%
-20.70%
-93.00%
2.45%
90.00%
20.70%

81.87%
10.16%
10.30%
5.51%
1.76%
0.11%
4.18%
113.88%
13.88%

77.70%
10.67%
11.16%
12.57%
1.63%
0.08%
0.10%
113.90%
13.90%

75.17%
10.30%
11.22%
12.28%
1.57%
0.10%
2.36%
113.00%
13.00%

100.00%

100.00%

80.12%
13.59%
9.93%
8.30%
1.66%
0.06%
0.23%
113.89%
-13.89%
100.00%

73.17%
13.78%
12.81%
11.48%
1.88%
0.05%
0.22%
113.38%
-13.38%
100.00%

105.30%
17.49%
15.32%
18.03%
1.84%
0.15%
0.04%
158.18%
58.18%
100.00%

69.76%
11.86%
10.06%
10.20%

100.00%

77.09%
12.18%
10.34%
11.36%
1.76%
0.06%
0.17%
112.94%
-12.94%
100.00%

823.1
3590.7
1296.5

592
4342.3
3275

3476
16222.7
12254.3

1062.6
5221.8
2643.2

1104.7
6156.9
2753.2

1179.2
5924.2
3413.8

68009

70634

70158

(7,795)

(8,612)

(8,279)

60,214

62,022

61,878

35,175
60,464

1,286.70
6,824.20
4,415.80

205054
34862
29,574
29,996
4358
193
402
304440
10,489
293,950

0.07%
0.14%
103.57%
3.57%
100.00%

4633.2
24127.1
13226

-2473
615
9
-223.9
3637.4
-185.1

2239.7
639.5
-16.9
-1649.7
9421.9
-305.7

8695.9
2261.4
-41.2
-879.8
41989.3
-870

1500
682.4
-10.8
-1169.9
9929.3
-179.2

-731.1
589.2
-21.4
-280.1
9571.4
-178.5

1251.9
638.5
-39.4
-109.5
12258.7
-142.2

2,051.90
733.5
-40
-100
15,172
-125

4072.7
2643.6
-111.6
-1659.5
46931.5
-624.9

0
3452.3

920.9
10037.1

920.9
42040.2

120
9630.1

874.6
8518.3

436.1
12552.6

500
15,547

1930.7
48237.3

60216.6
18433.1
7791.2
0
81004.4
9408.8
301.3
177155.4
0
177155.4

67949
19918.3
12155.6
0
-1042.3
9526.3
301.7
108808.6
64148.3
172956.9

128165.6
76720.1
43121.3
114252.3
223997.3
37971.9
1240.7
625469.2
64148.3
689617.5

0
18737.9
10886.3
61582.8
-938.9
8934.1
259
99461.2
79778.5
179239.7

0
18359.4
7302.7
66150.5
-792.8
8935.2
238.2
100193.2
87698.3
187891.5

17144.8
9274.3
176.2
66245
94070.9
8507.4
-860.7
194557.9
0
194557.9

19887
10,987.00
6,785.00
67,543.00
77755
8,655.00
250
191,862.00
0.00
191,862.00

37031.8
57358.6
25150.2
261521.3
170094.2
35031.7
-113.5
586074.3
167476.8
753551.1

31st MAR '11

31st MAR '11

31st MAR '11

31st MAR '11

2010-11E

2011-12E

2012-13E

2013-14E

246064
45321
32531
35995
5012
222
443
365589
26223

295277
61183
36110
41395
5814
244
496
440534
62935

369097
82597
40443
49674
6860
273
555
549500
151043

479825
113984
46105
60602
8232
309
633
709691
370055

377600

398457

339635

20.00%
30.00%
10.00%
20.00%
15.00%
15.00%
10.00%
11.00%
150.00%
15.45%

20.00%
35.00%
11.00%
15.00%
16.00%
10.00%
12.00%
20.50%
140.00%
11.27%

25.00%
35.00%
12.00%
20.00%
18.00%
12.00%
12.00%
24.74%
140.00%
5.52%

30.00%
38.00%
14.00%
22.00%
20.00%
13.00%
14.00%
29.15%
145.00%
-14.76%

72.51%
13.35%
9.59%
10.61%
1.48%
0.07%
0.13%
107.73%
7.73%
100.00%

78.20%
16.20%
9.56%
10.96%
1.54%
0.06%
0.13%
116.67%
16.67%
100.00%

92.63%
20.73%
10.15%
12.47%
1.72%
0.07%
0.14%
137.91%
37.91%
100.00%

141.28%
33.56%
13.57%
17.84%
2.42%
0.09%
0.19%
208.96%
108.96%
100.00%

5104
27754
15346

5673
30124
17683

6123
33125
19986

6700
36055
23441

339,366

6526
3000
-265
100
57565
-500

8588
3456
-230
380
65674
-534

9989
3887
-254
-215
72641
-676

11230
4200
-109
-104
81413
555

1267
58332

1568
66708

1838
73803

2050
84018

763900

163850

148640

458000

GAIL (INDIA) LTD.

INCOME STATEMENT
(Figures in Rs. Crores.)

Net Sales/ Income from Operations

% full year
% growth y-o-y
% growth q-o-q
Total Expenditure
(Increase) / Decrease In Stock In Trade & WIP
% of Revenue
Consumption of Raw Materials
% of Revenue
Employees Cost
% of Revenue
Other Expenditure
% of Revenue
Consumption of Materials/Purchase
% of Revenue
OPBDIT
% full year

(OR)

%Y-o-Y

% growth y-o-y
% growth q-o-q
OP Margin
Interest
Depreciation
PBT From Operations
Other Income
PBT & Exceptional Item
Exceptional Item
Profit Before Tax
Current Tax
Deferred Tax
Fringe Benefit Tax
Eff tax rate - non deferred
Eff tax rate (%)
Profit After Tax
Prior Period Items
Extraordinary Items
Net Profit
% full year
% growth y-o-y
% growth q-o-q
PAT(% of Sales)
Equity
No of Equity shares
EPS Basic

GAIL INDIA LTD.

CASH FLOW STATEMENT
(in Rs.crores)

CASH FLOW STATEMENT

31st MAR '07

31st MAR '08

31st MAR '09

2006-07A

2007-08 A

2008-09 A

285978

385500

419402

47311

125354

140032

238667

260146

279370

Particulars
PBT
Tax - non deferred
PAT
Depreciation
Operating Cash Flow
Capex
Net cash Flow
Cash Flow / Share

57538

57102

55991

296205

317248

335361

1784

905

2256

294421

316343

333105
3919

5171

3704

Dividend/dividend tax

Increase in equity capital

423

Inc/(Dec) in Investments
Inc/Dec in Net Working Capital

513

-4

1455

-656

749

Inc/Dec in loan funds

-579

-72

-66

Opening cash balance

4496

2260

4473

291873

314960

334253

2660

4473

3456

Total cash flow

Closing cash balance

31st MAR '10

31st MAR '11

31st MAR '12

31st MAR '13

31st MAR '14

2009-2010E

2010-11E

2011-12E

2012-13E

2013-14E

386622

550852

669237

1148576

143282

181781

220848

379030

243340

369071

448389

769546

56691

57516

58466

59266

60050

300031

426587

506855

828812

60050

2568

115

3401

1246

2577

297462

426472

503454

827565

57473

3500
0
0
103

82

65

56

84

1700

719

-2765

452

-1093

-14

-14

-18

-13

-6

3456

3500.76

3657.75

3699

3734

296596

424676

502652

830262

56931

300052

428176

506309

833961

60665

GAIL INDIA LTD.

BALANCESHEET
(in Rs.crores)
31st MAR '06

31st MAR '07

31st MAR '08

2005-06A

2006-07A

2007-08 A

Shareholder's funds

9973.3

11392.91

13004.88

Capital:Issued, Subscribed & Paid-up.

845.65

845.65

845.65

9127.65

10547.26

12159.23

BALANCESHEET

SOURCES OF FUNDS

Reserves and Surplus:

Capital Reserve
Share Premium Account
Investment Allowance Reserve
Bonds Redemption Reserve
Foreign Currency Translation Reserve

2.1

1.98

1.86

0.27

0.27

0.27

251.31

215.1

146.48

96.38

128.51

160.64

-2.33

General Reserve

1409.49

1684.37

2013.14

Profit and Loss A ccount

7370.43

8517.03

9836.84

Loan Funds

1916.56

1337.85

1265.87

1600

1100

1100

316.56

237.85

165.87

Secured Loans
Unsecured Loans
Deferred Tax Liability (Net)

1299.7

1318.67

1319.69

13189.56

14049.43

15590.44

8171.55

9391.31

9749.95

14469.48

14932.56

16957.86

6913.52

7478.19

8024.57

7555.96

7454.37

8933.29

Capital Work -in- Progress

615.59

1936.94

816.66

Investments

927.57

1441.05

1441.09

Advances For Investment (Pending Allotment)

515.79

22.79

49.79

TOTAL
APPLICATION OF FUNDS
Fixed Assets
Gross Block
Less: Depreciation
NET BLOCK

Current Assets, Loans and Advances

12288.64

7745.51

10410.02

Inventories

483.19

552.36

569.81

Sundry Debtors

753.47

790.71

1073.54

4495.94

2660.41

4472.99

Cash and Bank balances

Other Current Assets

39.65

31.67

56.82

Loans and Advances

6516.39

3710.36

4236.86

Less: Current Liabilities and Provisions

8713.99

4551.23

6059.28

Current Liabilities:

3164.62

2585.59

3359.89

Sundry Creditors

1520.24

1448.36

1797.75

Deposits/Retention Money from Contractors and

Others

123.91

308.14

185.38

Other Liabilities

762.93

726.25

637.5

Gas Pool Money

726.67

71.49

710.6

Unclaimed Dividend

1.96

2.83

2.23

28.91

28.52

26.43

Provisions:

5549.37

1965.64

2699.39

Provision for Taxation(FBT)

5316.15

1716.12

2018.64

169.13

169.13

507.39

Provision for Corporate Dividend Tax

23.72

28.74

86.23

Provision for Leave Encashment & Post Retirement

Medical Benefits

40.37

51.65

87.13

3574.65

3194.28

4350.74

13189.56

14049.43

15591.57

Interest Accrued But not due

Provision for Proposed dividend

Net current Assets

TOTAL

31st MAR '09

31st MAR '10

31st MAR '11

31st MAR '12

31st MAR '13

31st MAR '14

2008-09 A

2009-2010E

2010-11E

2011-12E

2012-13E

2013-14E

14769.63

16571.75

18423.86

20301.02

22203.16

24155.29

1268.48

1268.48

1268.48

1268.48

1268.48

1268.48

13501.15

15303.27

17155.38

19032.54

20934.68

22886.81

1.74

1.7

1.65

1.65

1.63

1.6

0.27

0.27

0.27

0.27

0.27

0.27

19.11

19.11

19.11

19.11

19.11

19.11

192.77

192.77

192.77

192.77

192.77

192.77

1997.68

2347.68

2747.68

3172.68

3622.68

4122.68

11289.58

12741.74

14193.9

15646.06

17098.22

18550.38

1200.13

1186.33

1172.34

1154.36

1141.82

1136.24

1100

1100

1100

1100

1100

1100

100.13

86.33

72.34

54.36

41.82

36.24

1325.93

1327.87

1333.54

1341.86

1351.67

1363.51

17295.69

19085.95

20929.74

22797.24

24696.65

26655.04

11476.65

13535.77

13157.92

16073.08

16853.66

18982.47

17603.98

18850.98

19850.77

20977.16

21301.43

22623.13

8553.66

9062.89

9555.53

10041.85

10507.54

10955.43

9050.32

9788.09

10295.24

10935.31

10793.89

11667.7

2426.33

3747.68

2862.68

5137.77

6059.77

7314.77

1437.52

1540.88

1623.35

1688.45

1744.54

1828.77

299.75

50.8

235.98

435

33.45

480

12236.54

12456.66

12135.32

11435.87

12345.34

12675.57

601.41

632.45

656.67

685.55

715.65

740.99

1503.34

1828.76

2135.56

2465

2667.78

2989.97

3456.15

3500.76

3657.75

3699

3734

3800

54.63

58.87

61.98

64.65

66.67

68.88

6621.01

6435.82

5623.36

4521.67

5161.24

5075.73

8153.52

6629.29

5432.23

7456.68

7878.78

9235.53

4176.67

4083.02

4009.3

6148.47

5035.71

4829.97

4575.32

17296.94

19136.75

21165.72

23232.24

23461.62

25866.56

1972.49
212.28
452.93
1512.25
2.88
23.84
3976.85
3390.53
380.54
64.67

141.11

GAIL (INDIA) LTD.

DEBT SCHEDULE

FY 2006-07 A

FY 2008 A

FY 2009 A

5000

5000

5000

6000

6000

6000

11000

11000

11000

62

2316

1659

1001.30

2379
13379

1659
12659

1001
12001

(Figures in Rs. Millions.)

SECURED LOANS
BOND SERIES-I
6.10% Non-Convertible Redeemable Bonds

BOND SERIES-II
5.85% Secure Non-Convertible Redeemable Bonds

Total
UNSECURED LOANS
OTHER LOANS & ADVANCES
From Banks:
State Bank Of India, London
From Others:
Oil Industry Development Board
Total
TOTAL DEBT

FY 2010 E

FY 2011 E

FY 2012 E

FY 2013 E

FY 2014 E

5000

5000

5000

5000

5000

6000

6000

6000

6000

6000

11000

11000

11000

11000

11000

86

72.34

54.36

41.82

36.24

86
11086

72
11072

54
11054

42
11042

36
11036

GAIL INDIA LTD.

Valuation
(in Rs. Crores)
Growth Assumptions
Long term World GDP growth rate

CAPM Assumptions
Ke
RFR
Beta
Rp

Enterpsire Value (EV)

3%
Current Market Price
Diluted Shares
Market Capitalisation
Long Term Liabilities
Less: Cash & Cash Equivalents
Net Debt
Enterprise Value (EV)

12.3%
4%
1.4
6%

Calculation of Free Cash Flow

Revenues
EBITDA
EBIT
Tax Expense
Net Operating Profit After Tax
Depreciation & Amortisation
Working Capital Change
Operating Cash Flow
Capex
FCF
Diluted Shares

2009A

Explicit Forecast Period

2010E
2011E
2012E

2,377,595
404,431
348,440
140,032
208,408
55,991
749
263,650
2,256
265,906

2,472,138
442,108
385,417
148,269
237,148
56,691
1,700
292,139
2,568
294,707

3,263,222
440,535
383,019
132,084
250,935
57,516
719
307,732
115
307,847

12,685

12,685

12,685

12,685

1
0.89
262,757

2
0.79
244,715

3
0.71
290,795

Projection Year
Discount Factor
Present Value of FCF
Y/Y Growth Analysis
Revenues
EBITDA
EBIT
Depreciation & Amortisation
Margin Analysis (As % of Revenues)
EBITA Margin
EBIT Margin
Depreciation & Amortisation
Capex
Tax Rate (Tax Expense/EBIT)

Terminal Value
Sum of PV of FCF for explicit forecast
WACC
Long term growth in EBIT
Present Value of terminal value
Terminal Value as % of Total Value

4,405,350
585,912
527,446
181,781
345,665
58,466
(2,765)
406,896
3,401
410,297

4%
9%
11%
1%

32%
0%
-1%
1%

35%
33%
38%
2%

17%
15%
2%
-0.095%

18%
16%
2%
-0.104%

14%
12%
2%
-0.004%

13%
12%
1%
-0.077%

40%

38%

34%

34%

2,985,837
12%
3%
4,889,578
62%

Calculated Equity Value

Enterprise Value
- Debt
+ Cash
Net Debt
Equity Value

Sensitivity - Varying Terminal Growth Rate

WACC
10.0%
11.0%
12.2%
13.0%
14.0%

PV of FCF
3,297,538
3,147,900
2,985,837
2,875,574
2,751,593

WACC
10.0%
11.0%
12.2%
13.0%
14.0%

PV of FCF
3,297,538
3,147,900
2,985,837
2,875,574
2,751,593

4,889,578
10.0%
11.0%
12.2%
13.0%
14.0%

PV of Terminal Value
2%
3%
92,943
99,770
76,846
81,885
62,204
65,827
54,504
57,463
46,562
48,895

Sensitivity - EV/EBITDA Exit Multiple

PV of Terminal Value (EV/EBITDA)
5.0
5.5
3,963,104
4,359,414
3,686,321
4,054,953
3,392,180
3,731,398
3,195,578
3,515,135
2,978,092
3,275,901

Debt Equity Weightage

E/(D+E) @ Enterprise Value
D/(D+E) @ Enterprise Value

420.65
12,685
5335861
1,200.1
3,456.2
4,656.3
5340517

Interest Rate (%)

Tax Rate (%)

6%
33

WACC Calculation
WACC

2013E

First Stage of Valuation

2014E
2015E
2016E

6,167,490
696,926
637,660
220,848
416,812
59,266
452
475,626
1,246
476,872

8,942,860
1,171,515
1,111,465
379,030
732,435
60,050
(1,093)
793,577
2,577
796,154

10,516,803
1,398,735
1,259,160
433,962
825,198
139,575
(1,093)
965,865
8,120
973,986

11,757,786
1,563,786
1,407,741
485,170
922,571
156,045
(1,093)
1,079,708
9,078
1,088,787

99.91%
0.1%

12%

Second Stage
of Valuation
Terminal Year

2017E
12,463,253
1,657,613
1,492,206
514,280
977,926
165,407
(1,093)
1,144,425
9,623
1,154,049

12,685

12,685

12,685

12,685

12,685

4
0.63
301,337

5
0.56
448,550

6
0.50
489,248

7
0.45
487,621

8
0.40
460,814

12,774,835
1,699,053
1,529,511
527,137
1,002,374
169,542
(1,093)
1,173,009
9,864
1,182,872
12,685

29%
19%
21%
1%

23%
68%
74%
1%

18%
19%
13%
132%

12%
12%
12%
12%

6%
6%
6%
6%

3%
3%
3%
2%

12%
1%
-0.077%

12%
1%
-0.077%

12%
1%
-0.077%

12%
1%
-0.077%

12%
1%
-0.077%

12%
1%
-0.077%

34%

34%

34%

34%

34%

34%

7,875,414
(1,200)
(3,456)
(4,656)
7,870,758

Intrinsic Value
Equity Value
Diluted Shares
Intrinsic Value

7,870,758
12,685
$620.49

Terminal Value
3%
107,573
87,553
69,843
60,718
51,441

2%
266.92
253.85
239.92
230.62
220.22

Intrinsic Value
3%
267.46
254.25
240.21
230.86
220.41

3%
268.07
254.70
240.53
231.11
220.61

nal Value (EV/EBITDA)

6.0
4,755,725
4,423,585
4,070,616
3,834,693
3,573,711

5
572.02
538.41
502.44
478.25
451.33

Intrinsic Value
5.5
603.26
567.47
529.18
503.44
474.81

6
634.51
596.53
555.92
528.63
498.29

GAIL INDIA LTD.

RATIO ANALYSIS
(in Rs.crores)

RATIOS
GEARING %
DEBT EQUITY
CURRENT RATIO

31st MAR '06

31st MAR '07

31st MAR '08

2005-06A

2006-07A

2007-08 A

24.4
0.19
1.41

18.9
0.12
1.70

16.6
0.10
1.72

91.37
20.95

94.1
20.00

21.78
18.68
14.87
3.29
0.17
28.33%
19.06%
22.62
0.03

0.20%
17%

16.13
21.93
14.45
3.06
0.33
45.88%
14.43%
42.46
0.14
0.122
0.32
3209.53
0.24%
33%

28.22

30.76

ASSET TURNOVER
RONW(%)
ROCE(%)
OPM(%)
NPM(%)
Effective Interest Rate
Effective Tax Rate(%)
Cash/Net Assets
Other Income/PBT
Interest Coverage
Growth in Gross Block
Sales Growth
Operating Profit Growth
Inventory Turnover
Net Current Assets/Sales
Tax Rate Non-Deferred

55.02%

PBT From Operations Growth

EPS Growth

0.35

31st MAR '09

31st MAR '10

31st MAR '11

31st MAR '12

31st MAR '13

31st MAR '14

2008-09 A

2009-2010E

2010-11E

2011-12E

2012-13E

2013-14E

14.6
0.08
1.50

13.2
0.07
1.88

12.0
0.06
2.23

10.9
0.06
1.53

10.1
0.05
1.57

9.4
0.05
1.37

112.01
18.92

98.84
14.08

122.25
14.56

150.71
18.18

187.31
20.19

249.55
31.86

15.41
17.01
11.75
3.53
0.33
30.11%
18.99%
40.05
0.04
0.32
0.02
4060.03
0.17%
33%

12.55
17.88
9.44
2.84
0.40
25.86%
2.07%
56.77
0.07
0.04
0.09
4007.16
0.16%
38%

11.66
13.50
8.22
3.29
0.33
27.80%
6.25%
49.33
0.05
4.40
3.06
5062.71
0.19%
33%

14.40
13.30
8.38
2.83
0.33
23.01%
5.45%
79.99
0.06
6.08
4.64
6564.27
0.11%
33%

15.87
11.30
7.27
2.36
0.33
22.16%
5.53%
117.58
0.02
4.03
2.28
8803.15
0.08%
33%

24.90
13.10
8.61
2.59
0.33
20.02%
3.74%
188.74
0.06
13.41
8.22
12278.75
0.05%
33%

0.09

-0.08

3.23

5.11

2.62

9.14

22.02

18.40

21.14

29.10

35.35

60.67