Gail Q2 results: Consolidated net profit up 10.2% at Rs 2,693 crore

State-run natural gas supplier Gail reported a 10.2 per cent rise in consolidated net profit attributable to equity holders of the parent for the second quarter (July-September) of 2024-25 (FY25). Net profit rose to Rs 2,693.5 crore, up from Rs 2,444.05 crore in the year-ago period. Sequentially, Gail's net profit fell 15.37 per cent from Rs 3,182.9 crore.

 

The growth was accompanied by a 2.81 per cent rise in consolidated revenue from operations to Rs 33,981.3 crore in Q2, up from Rs 33,049.7 crore in Q2 FY24.

 

The latest rise in net profits was driven by higher earnings from various segments, even as Gail's largest revenue segment—domestic natural gas marketing—saw profits fall 27 per cent to Rs 1,253.6 crore in Q2, down from Rs 1,722.08 crore in Q2 FY24.

 

The second-largest revenue segment, natural gas transmission, saw profit rise 8 per cent to Rs 1,402.8 crore, up from Rs 1,294.42 crore in the same quarter of the previous year. Meanwhile, profit from city gas distribution rose 1.2 times to Rs 205.03 crore, up from Rs 93.07 crore in Q2 FY24, and profit in the liquefied petroleum gas (LPG) and liquid hydrocarbon business rose to Rs 248.9 crore, compared to a loss of Rs 16.9 crore earlier.

 

In the key petrochemical segment, the company recorded a profit of Rs 146 crore, as against a loss of Rs 160.9 crore in Q2 FY24. Sandeep Kumar Gupta, chairman and managing director, Gail, said the segment is expected to be reasonably profitable in FY25.

 

Meanwhile, the company’s expenses remained steady at Rs 31,154.3 crore, up 2.12 per cent from Rs 30,506 crore. This included purchases of Rs 24,518 crore worth of stock in trade in Q2, 6.78 per cent lower than the Rs 26,303.5 crore worth of purchases made in Q2 FY24.

 

Gail stated it has incurred a capital expenditure of Rs 1,885 crore during Q2, primarily on pipelines and the petrochemicals segment, bringing cumulative capital expenditure in the first six months of the financial year to Rs 3,544 crore. This is about 44 per cent of the annual capital expenditure target of Rs 8,044 crore.