The share price of GAIL surged over 5 percent on Thursday after the company reported strong earnings for the March 2020 quarter. The state-owned gas utility company reported a 170 percent jump in its fourth-quarter net profit, as lower corporate tax rate offset lower petrochemical and natural gas prices.

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The company's net profit in Q4 came in at Rs 3,018.20 crore as against Rs 1,122.23 crore in the corresponding quarter a year ago.

The stock rose as much as 5.4 percent to Rs 106.90 per share on the BSE. It has jumped over 22 percent just in the last 1 month.

Brokerages are also bullish on the stock which kept the sentiment upbeat. Morgan Stanley is 'overweight' on the stock on the company's strong performance amid the weakening macro environment. It added that the company's operations are near the pre-COVID levels.

Meanwhile, Credit Suisse also said that it was positively surprised on higher margin for LPG and petchem segments.

GAIL Chairman and Managing Director Manoj Jain said the company opted for lower corporate tax rates offered by the government to firms willing to forego exemptions. The lower tax rate offset a dip in petrochemical, liquid hydrocarbon and natural gas prices.

In the current financial year 2020-21, it plans to maintain a capex spend of Rs 4,000-5,000 crore, he said, adding that there is no review of the spending in view of COVID-19 as most of the expenditure is in ongoing committed projects of laying gas pipeline grid.

For the full financial year 2019-20, GAIL recorded a 10 percent rise in its net profit to Rs 6,621 crore.