GAIL reports 87% spike in Q2 net profit at Rs 2,442 crore

GAIL Q2 results: Net profit increases 87% to Rs 2,442 crore

GAIL (India) on October 31 reported an 87 percent surge in consolidated net profit for the second quarter of the financial year 2023-24, on account of healthy transmission volumes . The market reacted positively with the stock trading up 2 percent.

Consolidated net profit of the country’s largest gas distributer stood at Rs 2,442 crore in the second quarter, compared to Rs 1,305 crore last year. Sequentially, net profit increased 36 percent from Rs 1,793 crore in the quarter ended June 2023.

Revenue from operations came in at Rs 33,050 crore in the quarter in the quarter, a fall from Rs 38,729 crore from the year-ago period.

During the second quarter, natural gas transmission volume stood at 120.31 MMSCMD (million metric standard cubic meter per day), as against 116.33 MMSCMD in the previous quarter. Gas marketing volume stood at 96.96 MMSCMD, compared to 98.84 MMSCMD in previous quarter.

Sandeep Kumar Gupta, Chairman & Managing Director said the company performed well during the quarter specially on the strength in gas transmission segment which will continue to perform better. Performance during the quarter was constrained due to lower realisation in polymers and LPG which are expected to be better going forward, he added.

In the quarter under review, EBIT (earnings before interest and taxes) from the natural gas transmission segment was at Rs 1291 crore, compared to Rs 710 crore in the year-ago period. Natural gas marketing EBIT also increased to Rs 1,723 crore in Q2, from Rs 309 crore in the same period last year.

Meanwhile, the company’s petchem segment reported loss of Rs 161 crore in the quarter, compared to a loss of Rs 346 crore last year.

Gupta stated that the company incurred a capex of around Rs 4,853 crore during the first half year, mainly on pipelines, petrochemicals, equity to JVs, etc.

At 2:40 pm, shares of GAIL were trading around 2 percent up at Rs 120 a piece on BSE.