Gail Q4 results: Profit slips 22% at Rs 2,177 cr from Q3, revenue down 6%

Gail Q4 FY24 results: Consolidated net profit of the country's largest gas distributer grew multi-fold compared to Q4 FY23

State-run Gas Authority of India Limited (Gail) on Thursday reported a consolidated net profit of Rs 2,176.97 crore for the fourth quarter (Q4) of financial year 2023-24 (FY24). This was a 260.7 per cent jump in profits compared to Rs 603.52 crore reported during the same quarter last year. However, sequentially profits slipped 22 per cent from Rs 3,193.34 crore in Q3.

The company's revenue for the fourth quarter stood at Rs 32,334.5 crore, up marginally by 0.86 per cent year-on-year from Rs 32,058.2 crore. Sequentially, revenue slipped 5.6 per cent from Rs 34,253.52 crore.

Gail India witnessed a 7 per cent decrease in its earnings before interest, taxes, depreciation, and amortisation (Ebitda) during the fourth quarter, amounting to Rs 3,559 crore compared to Rs 3,822 crore in the previous quarter.

The operating profit margin (OPM) for the quarter stood at 11 per cent, showing a slight decline from 11.2 per cent in the previous quarter.

Despite the overall decrease, certain segments showed promising performance. The earnings before interest and taxes (Ebit) from the natural gas transmission segment witnessed a significant improvement, recording Rs 979.78 crore compared to a loss of Rs 16.41 crore in the same period last year. Similarly, the petrochemical segment reported a notable recovery, with Ebit reaching Rs 262.34 crore, compared to a loss of Rs 400 crore in the previous year.

However, Gail's natural gas marketing segment saw a decrease in Ebit, dropping to Rs 1,388.67 crore in Q4 from Rs 1,880.42 crore in the last quarter.

The petrochemicals segment witnessed a robust recovery with a 323 per cent increase in Ebit, reaching Rs 262 crore from Rs 62 crore in the previous quarter. Additionally, the liquefied petroleum gas (LPG) segment displayed positive growth, posting a 26 per cent increase in Ebit at Rs 326 crore compared to Rs 258 crore in the preceding quarter.

Gail incurred a loss of Rs 70 crore in its other segments, a significant contrast to the Ebit of Rs 129 crore in the previous quarter.

For the entire financial year, Gail reported a 66.7 per cent growth in consolidated net profit at Rs 8,836.48 crore year-on-year from Rs 5,301.51 crore. Revenue from operations, however, dropped 9.5 per cent to Rs 1.31 trillion year-on-year from Rs 1.44 trillion.

Shares of Gail were trading at Rs 192.9 a piece, declining by nearly four per cent, a decline from the previous day’s close, on the Bombay Stock Exchange (BSE).