State gas utility GAIL India on Wednesday reported a 244 per cent jump in its June quarter net profit, boosted by a turnaround in petrochemical business and sale of stake in Mahanagar Gas, which retails compressed natural gas (CNG) in Mumbai.
Net profit in April-June 2016 was Rs 1,335 crore, against Rs 388 crore in the same period a year ago, the company said. This was mostly because of the revenue GAIL got from the initial public offering of Mahanagar Gas.
"GAIL's PAT excluding gain from stake sale in Mahanagar Gas Limited is Rs 846 crore, signifying an increase by 118 per cent," it said.
During the quarter, GAIL's petrochemical business saw a turnaround with production and sales jumping 149 per cent and 121 per cent respectively.
This resulted in revenue increase in this segment by 95 per cent to Rs 1,133 crore, while the profit stood at Rs 9 crore as against loss of Rs 397 crore in the corresponding period of the previous year.
"The increase in net profit during Q1 of financial year 2016-17 was also supported by increase in natural gas sales and transmission volumes which increased by 15 per cent and 10 per cent respectively," it said, without giving details.