New Delhi: State-owned Gail (India) Ltd on Thursday reported a higher quarterly net profit in three months to December 2021 because the increase in natural gas prices helped increase its margins.
RS Net Profit 3,287.99 Crore, or Rs 7.40 per share, in October-December 2021 more than doubled compared to 1,487.33 crore Rs, or Rs 3.30 per share, in the same period one year back, the company said in A statement.
The profit is 15 percent higher than the previous quarter.
While the volume of natural gas transmission and profitability remained almost unchanged, the company saw its profitability of fuel marketing a surge into Rs 1,749.71 Crore in the third quarter of the current fiscal year as against the loss of Rs 73.70 Crore per year back.
The profitability of the LPG and liquid hydrocarbon business also jumped 200 percent.
“Gail has exceeded all financial performance parameters in the third quarter of finance 2021-22 due to increasing gas marketing deployment, better product prices and increased operating efficiency in petrochemicals and liquid hydrocarbons,” said the statement.
Revenue rose 66 percent Rs 26,427.37 Crore.
In the first nine months of the current fiscal year, the company posted RS 7,681 crore’s net profit on RS 64,678 Crore’s revenue “mainly due to the increase in gas marketing deployment, better product prices, better physical performance in marketing and gas segment transmission.” Chairman Gail And the Managing Director Manoj Jain said this was the highest quarterly income of the company’s net operation and profit.
“In fact, over the 9-month period ended December 31, 2021, Gail has exceeded the highest PAT achieved in previous financial years,” he said.
Gail occurs capex of Rs 5,034 crore especially in pipes, petrochemicals, equity to joint ventures.
During the quarter, Gail acquired a 26 percent stake from IL & FS at the Ongc Tripura Power Company, he said.
“This acquisition will be synergistic and allows Gail to be a fortress of his attendance in the northeastern region of the country.” He said Gail had assigned his first pilot project first to mix hydrogen to the agl gas distribution network on Indore, Madhya Pradesh.
This project marks stepping stones from Indian travel towards the future based on hydrogen and carbon neutral, he said.