State-run GAIL (India) has posted a 28 per cent increase in net profit for the third quarter of the financial year 2017-18 ended on December 31 to Rs 12.62 billion on better performance by liquid hydrocarbon (LHC), gas marketing and transmission segments.
This is compared to Rs 9.83 billion during the same period in 2016-17. Natural gas transmission and marketing volumes increased by 6 per cent each, petrochemicals sales by 21 per cent, liquid hydrocarbon sales by 10 per cent and liquefied petroleum gas (LPG) transmission by 2 per cent in the third quarter, as compared to the corresponding quarter in previous year.
Similar physical growth in all the segments was recorded for nine months, ending December 31 resulting in an increase of 31 per cent in net profit to Rs 35.97 billion. This is after excluding gain in the previous fiscal from stake sale in Mahanagar Gas. The Board of Directors have recommended, for approval of the shareholders, issue of bonus shares in the ratio of one equity shares of Rs 10 each for three existing equity shares of Rs 10 each. Revenue from operations rose 17% to Rs 144.14 billion.
B C Tripathi, chairman and managing director, GAIL (India) said, “All the segments have registered physical growth as compared to previous year, which is reflected in both the top line and the bottom line of the company. Along with the operational growth, company is also increasing its Natural Gas pipeline infrastructure.” He added that city gas distribution infrastructure is also being expanded together with our subsidiary and joint ventures.
The company has kept a capital expenditure target of Rs 60 billion for the financial year 2018-19 and expects to achieve more than 70 per cent of its capex target during the current financial year.