GAIL consolidated Q1 profit up more than three-fold at Rs 2,157 crore

GAIL (India) has reported a significant increase in consolidated net profit for the first quarter of financial year 2021-22. Consolidated net profit during the quarter under review stood at Rs 2,157.15 crore, or 235 per cent higher than the Rs 642.97-crore profit reported by the company in the comparable quarter of the previous financial year.

Consolidated total income stood at Rs 17,702.43 crore during the quarter ended June 30, 2021, up from Rs 12,339.12 crore in the same months of financial year 2020-21.

“The increase in the profits is mainly attributable to better physical performance in natural gas marketing and transmission, improved margins in gas marketing due to favourable market conditions and better price realisation in petrochemicals and liquid hydrocarbons,” a company statement said.

According to GAIL, the natural gas transmission volume increased by 19 per cent and marketing volume was up 18 per cent over the corresponding quarter in the previous year. “The volume growth is due to normalcy of the business activities as against nationwide lockdown during the first quarter of financial year 2020-21,” GAIL said.

Manoj Jain, Chairman and Managing Director of GAIL said that the company is focussed on development of National Gas Grid and currently GAIL, along with its JVs, is executing Pipeline Projects of around 8,000 kilometres with an investment of around Rs 38,000 crores.

GAIL said that it is also expanding its Polypropylene production capacity by setting up a 500,000-tonne-per-annum (KTA) propane dehydrogenation (PDH) plant and polypropylene (PP) Unit at Usar (Maharashtra) and 60 KTA PP unit at Pata (Uttar Pradesh) with an approximate investment of Rs 10,000 crore.

During current financial year, GAIL said it has a capital expenditure plan of Rs 6,600 crore.