GAIL Q2 net profit down 66% at Rs 440 cr

Lower price realisation in transmission of LPG and other petroleum products trigger fall

GAIL (India) Ltd, India's state-owned natural gas transmission utility, today posted a 66% decline in net profit for the quarter ended September on the back of lower price realisation in transmission of Liquefied Petroleum Gas (LPG) and other petroleum products.

The company posted a net profit of Rs 440 crore during the quarter as compared to Rs 1,302 crore during the corresponding quarter previous fiscal.

"The decrease in profit was mainly due to lower price realisation of LPG, other Liquid Hydrocarbons and Petrochemicals products, increased interest and depreciation charges after commissioning of Petrochemical expansion plant," the company said in a statement.

GAIL also informed its gross margin during the quarter stood at Rs 1,146 crore as against Rs 2,311 crore in the corresponding quarter last fiscal. Total income of the company increased by a marginal 0.3% to Rs 14,466 crore during the three months period ended September.

GAIL's revenue from natural gas transmission business increased 38% to Rs 1,060 crore in the September quarter as against Rs 767 crore in the corresponding period of previous year while the sales from natural gas marketing increased by 3% to Rs 12,218 crore as against Rs 11,819 crore in the year-ago period.

Net sales from Petrochemical business stood at Rs 798 crore, as against Rs 1,281 crore in the corresponding period of previous year. The revenue from LPG and Liquid Hydrocarbons business was Rs 748 crore, as against Rs 1,704 crore earlier.

The company also informed natural gas sales increased by 8% to 74.25 million standard cubic meter per day (MMSCMD) in the second quarter as compared to 68.95 MMSCMD during the corresponding period of previous fiscal. The firm reported natural gas transmission during the second quarter of 90.26 MMSCMD as against 91.18 MMSCMD in the corresponding period last fiscal.

The company's share price at the Bombay Stock Exchange (BSE) today closed at Rs 307.45, down 0.82% as compared to previous close.