GAIL India net profit drops 10%

Higher fuel subsidy outgo as well as fall in gas transmission volumes affect profit

State-owned gas utility GAIL India Ltd today reported 10% drop in net profit for the July-September quarter on the back of higher fuel subsidy outgo as well as fall in gas transmission volumes.

Net profit for the quarter was Rs 984 crore, 10% lower than Rs 1,094 crore in the same period last fiscal, GAIL Chairman and Managing Director B C Tripathi told reporters here.

"Our outgo on LPG subsidy increased 39% to Rs 786 crore from Rs 567 crore," he said.

Also, fall in Reliance Industries' eastern offshore KG-D6 fields led to a drop in volumes the company transported, he said.