GAIL net more than doubles in Q2; gas marketing back in black

GAIL (India) Ltd, the nation's largest natural gas utility, on Friday reported more than doubling of its net profit in the September quarter after it again started making money on gas marketing.

Net profit of Rs 2,862.95 crore, or Rs 6.45 per share, in July-September, was 131 per cent higher than Rs 1,239.67 crore, or Rs 2.75 a share, in the same period last fiscal, according to the company's stock exchange filing.

Sequentially, net profit was up 87 per cent over Rs 1,529.92 crore earning in the April-June quarter of the current fiscal.

GAIL is India's biggest natural gas marketing and transporting firm, supplying environment-friendly fuel to power plants, fertilizer units, city gas operators and industries. It also owns a petrochemical plant.

Revenue rose 57 per cent to Rs 21,515.30 crore in the second quarter of the current fiscal.

The profit jump came on the back of natural gas marketing returning to black. The segment posted a pre-tax profit of Rs 1,078.92 crore in Q2 as compared to a loss of Rs 363.98 crore a year back.

Natural gas transmission earnings were almost flat while pre-tax profit from the petrochemical business doubled to Rs 363.29 crore.

Later, the company in a statement said it registered its highest ever half-yearly turnover and profit in April-September of FY22.

Turnover in H1 came in at Rs 38,829 crore as against Rs 25,671 crore in the last fiscal, an increase of 51 per cent.

Net profit jumped by 194 per cent to Rs 4,393 crore for the half-year as against Rs 1,495 crore in H1 FY21.

''During the (July-September) quarter, the physical performance improved across all segments,'' the statement said.

Natural gas transmission increased to 114.32 million standard cubic meters per day in Q2 FY22 as against 107.66 mmscmd in Q1FY22, up by 6 per cent.

The sale of natural gas rose to 97.72 mmscmd during the quarter as against 95.95 mmscmd in Q1 FY22, up by 2 per cent.

Petrochemical production sales rose 60 per cent to 2,21,000 tonnes in the quarter.

GAIL Chairman and Managing Director Manoj Jain said during the H1 FY22, GAIL has incurred a capex of Rs 3,180 crore mainly on pipelines and petrochemicals.

The company has a capex plan of Rs 6,600 crore in FY22.

''Performance of all segments of the company have improved significantly during the quarter,'' he said adding sustainable future performance is expected.

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