Gail Q2 net soars 41% at Rs 1,310 on earnings from marketing business

Gail earned Rs 853.48 crore pre-tax profit from gas transmission business in the quarter as compared to Rs 660.74 crore last year

State-owned gas utility GAIL India Ltd on Tuesday reported a 41.6 per cent jump in its second quarter profit as earnings from gas transportation and marketing business soared.

Net profit in July-September at Rs 1,309.63 crore, or Rs 7.74 a share, was 41.6 per cent higher than Rs 924.65 crore, or Rs 5.47 per share, in the same period a year ago, the company said in a statement.

GAIL, which owns the biggest natural gas pipeline network in the country, earned Rs 853.48 crore pre-tax profit from gas transmission business in the quarter as compared to Rs 660.74 crore last year.

The firm transported and marketed 5 per cent more gas volumes in the July-September quarter, the statement said.

Earnings from natural gas marketing rose 27 per cent to Rs 419.74 crore while the same from petrochemical business nearly halved to Rs 88.81 crore.

Revenue fell by about one per cent to Rs 12,409.65 crore.

GAIL said all the business segments registered positive physical growth both sequentially and on year-on-year basis.

"The increase in net profit in Q2 FY 2017-18 on year-on- year basis, was supported by increase in natural gas transmission and marketing volumes by 5 per cent each, LPG transmission by 11 per cent, petrochemicals sales by 29 per cent and liquid hydrocarbon sales by 17 per cent," it said.

On half yearly basis, net profit at Rs 2,335 crore was 32 per cent higher than year ago profit.