Petronet net nearly doubles on lower corporate tax rate

Petronet LNG Ltd, the country's biggest importer of liquefied natural gas, on Tuesday reported a near doubling of net profit in September quarter as it derived benefit of lower corporate tax rate.

Net profit in July-September at Rs 1,089 crore was 90 per cent higher than Rs 572.89 crore net profit in the same period, company CEO and Managing Director Prabhat Singh told reporters here.

"Pursuant to the introduction of the lower tax rates for corporates by the government for FY 2019-20, the company has taken the benefit of lower corporate tax rate of 22 per cent (as against 30 per cent) in the current quarter," he said. "Due to the same, there is a reversal of deferred tax liability of Rs 380 crore."
"The company elected to exercise the option of a lower tax rate of 25.17 per cent (announced last month by the government)," the notes to the company's financial results said. "Accordingly, the deferred tax liabilities (net) (DTL) as at June 30, 2019 and estimate of tax expense for the quarter ended June 30, 2019 have been remeasured and resultant impact of Rs 376 crore on DTL and Rs 70 crore respectively pertaining to previous quarter have been recognised in the current quarter."