GAIL's Q1 net down 29% on high input cost, sales up 16%

Moneycontrol Bureau

Gail India has reported 29 percent year-on-year decline in profit during the June quarter as its raw material, depreciation and employee cost went up significantly. Sales rose 16 percent Y-o-Y. GAIL shares closed the day at Rs 328.60, down 0.56 percent, a little after earnings announcement.

While the company’s raw material cost almost doubled to Rs 1050 crore, employee cost also shot up 15 percent to Rs 200 crore. The company said it gave Rs 700 crore toward its share of subsidy to oil marketers for selling fuel at government rates.

While profit from natural gas transmission was marginally down to Rs 553.83 crore,  LPG and liquid hydrocarbons segment recorded a loss before interest and tax of Rs 10.93 crore as against a profit before interest and tax of Rs 437.27 crore Y-o-Y

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