GAIL Q1 results: Consolidated net profit falls 45% to Rs 1,792 crore

State-run gas supplier GAIL on Monday reported a 45 per cent decline in consolidated net profit at Rs. 1,792 crore in the first quarter (April-June) of 2023-24 (FY24) against Rs. 3,250 crore in the year-ago period.

Sequentially, its net profit rose 179 per cent, up from Rs. 604 crore. This was mainly on account of increased gas marketing and transmission volumes and increased transmission tariff realisation.

In Q1FY24, the company’s consolidated revenue from operations fell 13 per cent to Rs. 32,848 from Rs. 37,942 crore in the year-ago period.

“In the June quarter, operating profit, calculated as earnings before interest, taxes, depreciation and amortization (Ebitda), rose quarter-on-quarter to Rs. 2,432.6 crore. The Ebitda margin expanded 660 basis points year-on-year to 7.5 per cent,” the company said.

During the latest quarter, natural gas transmission volume grew 7 per cent to 116.33 MMSCMD (million standard cubic meters of gas per day) in Q1 against 108.23 MMSCMD in Q4 FY23.

Marketing of natural gas, which contributes to 96 per cent of overall revenue for the company, fell by 18 per cent to Rs. 28,381.7 crore. Gas marketing volume increased by 2 per cent to 98.84 MMSCMD against 96.46 MMSCMD in the previous quarter. Liquid hydrocarbon sales increased by 7 per cent to 247,000 tonnes against 230,000 tonnes. Polymer sales also increased by 37 per cent to 162,000 tonnes against 118,000 tonnes in comparison to previous quarter.

The company has incurred a capital expenditure of about Rs. 2,391 crore during the current quarter, mainly on pipelines, petrochemicals, equity to joint ventures, etc, which is about 31 per cent of annual target of Rs. 7,750 crore, said Sandeep Kumar Gupta, chairman and managing director of GAIL.

Gupta said GAIL had been authorised to build the 160-km long Gurudaspur-Jammu natural gas pipeline length with a capital expenditure of Rs. 522 crore.

He said the company acquired 100 per cent stake in erstwhile JBF Petrochemicals, now GAIL Mangalore Petrochemicals, by infusing Rs. 2,101 crore through the Corporate Insolvency Resolution Process.

Petronet LNG net profit 13% higher at Rs. 819 cr

India’s largest liquefied natural gas (LNG) importer Petronet LNG on Monday reported a 13 per cent higher net profit of Rs. 819 crore in the first quarter of FY24, up from the Rs. 723 crore profit in the year-ago period.

The slower rise in profit comes at a time when LNG prices are softening globally.

Sequentially, the company’s net profit gained 31 per cent, as against Rs. 619 crore in Q4FY23.

The company’s revenue from operations stood at Rs. 11,656.38 crore, lower by 18 per cent in the same period last year.