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GAIL (India) tumbles after weak Q2 result

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PSU firm, GAIL (India) reported its Q2 earnings during trading hours today.

On consolidated basis, the company's net profit declined 34.73% YoY to Rs 1167.58 crore in Q2 September 2019. Total revenue from operations fell 6% to Rs 18249.90 crore in Q2 2019 compared with Rs 19352.98 crore in Q2 2018.

The company reported an improved physical performance in the current quarter which helped in maintaining gross turnover at Rs 18,010 crore as against Rs 18,276 crore in Q1 FY20. The company reported an improvement in Petrochem, LPG transmission, LHC and Gas transmission segments by 59%, 21%, 11% and 3% respectively as compared to Q1FY20.

Commenting on company's Q2 perfomance, Ashutosh Karnatak, chairman & managing director, GAIL stated that company's physical performance in Q2 FY20 has been better due to operational efficiency as against Q1 FY20. The petrochemical plant is running at more than 100% capacity. Further, volume of gas transmission is also showing upward trend in a direction to create gas based economy in the country. However, lower prices of Petrochemicals and Liquid Hydrocarbon (LHC), which are determined by international prices, have impacted the profit adversely.

GAIL (India) closed 3.86% lower at Rs 127.05 on BSE. Meanwhile, the S&P BSE Sensex closed 0.81% lower at 40,323.61.

GAIL (India) is India's leading integrated natural gas company with a market share of over 75% in natural gas transmission. Apart from natural gas transmission, distribution and processing, the company has diversified business interests in petrochemicals, LPG transmission, city gas projects and exploration and production activities. As of September 2019, Government of India holds 52.66% stake in GAIL (India).

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 08 2019. 15:44 IST
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