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GAIL (India) Ltd, India’s largest gas transmission utility, reported a 42 per cent jump in net profit for the quarter ended September as it did not have to shoulder the burden of under-recoveries to downstream companies on the subsidised sales of cooking gas.
The company’s net profit rose to Rs 1,302.9 crore during the quarter as compared to Rs 915.6 crore in the corresponding quarter last year. Until the previous quarter ended June, GAIL had to share a part of the under-recovery burden with other upstream firms in the form of discounts to marketing companies.
“The company provided nil discount for the quarter ended September (previous year corresponding quarter: Rs 698.68 crore) as the company has not received orders from the petroleum ministry on the sharing of under-recoveries on LPG for the quarter," GAIL said.
The provisional discount provided in the April-September period was Rs 500 crore as compared to Rs 1,398.68 crore in the same period last financial year.
"Effective April 1, the company has revised the useful life of fixed assets for the purposes of providing depreciation on fixed assets. This resulted in increase in profit before tax to the extent of Rs 69.3 crore during the quarter ended September and Rs 138.74 crore in the half year ended September," GAIL said.
GAIL said with the Petroleum and Natural Gas Regulatory Board fixing lower rate for various pipeline networks from November 20, 2008, the company has "derecognised revenue by an amount of Rs 192.8 crore during the quarter and Rs 434.43 crore in the first half."
The company’s total income rose marginally to Rs 14,129.7 crore as against Rs 14,002.4 crore in the same quarter last year. GAIL's share price at the BSE on Friday closed at Rs 529.15, up 3.8 per cent as compared to the previous close.
