GAIL Q3 results: Consolidated net profit up multi-fold to Rs 3,193 crore

GAIL (India)

GAIL (India) on January 29 reported a multi-fold increase in consolidated net profit at Rs 3,193.34 crore in the third quarter of the financial year 2023-24 amid softening in liquefied natural gas (LNG) prices from last year.

The consolidated net profit of the country’s largest gas distributor was Rs 397.59 crore in the same period last year. Sequentially, net profit increased 31 percent from Rs 2,442.18 in the quarter ending September 2023.

In 2022, GAIL had to cut down supplies to its customers after supply disruptions from Russia’s Gazprom and was forced to buy expensive LNG from the short-term market. Supply from Germany’s SEFE (renamed by the German government after Russia relinquished ownership of Gazprom) was resumed in March 2023.

Revenue from operations came in at Rs 34,767.84 in the quarter ending December 31, a marginal decline from Rs 35,939.96 in the year-ago period.

Sandeep Kumar Gupta, Chairman & Managing Director said that during the quarter the physical performance has improved across all major business verticals and petrochemical segment has turned profitable owing to plant efficiency, better capacity utilization and other optimization measures adopted.

He further stated that the company has incurred capital expenditure of Rs 6,583 crore during the period from April’23 to December’23, mainly on pipelines, petrochemicals, equity to JVs, etc.

The board of directors declared an interim dividend of 55 percent for FY 2023-24 i.e. Rs 5.50 per equity share.

During the quarter, average natural gas transmission volume stood at 121.54 MMSCMD (million metric standard cubic metre per day) as against 120.31 MMSCMD in Q2 FY24, the company said in a press release.

Gas marketing volume stood at 98.14 MMSCMD as against 96.96 MMSCMD in the previous quarter. LHC sales stood at 249 TMT as against 242 TMT & Polymer sales jumped up by 28 percent to 215 TMT as against 168 TMT in comparison to the previous quarter.

In the quarter under review, EBIT (earnings before interest and taxes) from the natural gas transmission segment was Rs 1,215 crore, compared to Rs 426 crore in the year-ago period.

Meanwhile, the company’s petchem segment reported EBIT of Rs 54.75 crore in the quarter, as against a loss of Rs 348.85 crore last year.