GAIL's full-fiscal profit floats by huge 57 % to `3,503 crore
GAIL (India) Limited registered a 57 per cent rise in Profit after Tax for the Financial Year 2016-17 with the PAT increasing to Rs 3,503 crore from Rs 2,226 crore in the last fiscal.
The rise in profit was boosted largely by a turnaround in the Company's Petrochemical business, increase in profits from Gas Transmission business and partial sale of stake in Mahanagar Gas Limited (MGL), despite lower price realisation in Polymer and Liquid hydrocarbons.
These results are after considering impairment of Investment in Ratnagairi Gas and Power Pvt. Ltd. (RGPPL) in 4th quarter of FY 2016-17 for Rs.783 crore. GAIL's PAT excluding non-operating one offs (i.e. gain from stake sale in MGL and impairment of Investments in RGPPL) is Rs 3,797 crore, an increase of 71 per cent year-on-year (yoy).
The Board has proposed a final total dividend of Rs. 2.70 per share (subject to approval of shareholders) making the total dividend for the year Rs. 1,535 crore, up by 120 per cent as compared to FY 2015-16. The earning per share is also up by 57 per cent to Rs. 20.71 per share on increased paid-up equity. During FY 16-17, GAIL also issued Bonus share in ratio of one bonus share for every three equity shares held.
The Company registered growth in physical performance in FY 2016-17 in all segments on year-on-year basis. Sale of Petrochemicals was up by 73 per cent, Natural Gas Marketing & Transmission volumes rose by 10 per cent & 9 per cent respectively, LPG Transmission volume was up by 19 per cent while Liquid Hydrocarbon Sales went up by 2 per cent.
On quarterly basis, GAIL's PAT in 4th quarter of FY 2016-17 decreased by 69 per cent to Rs. 260 crore from Rs. 832 crore in the corresponding period of the last fiscal due to accounting of impairment of Investments in RGPPL for Rs. 783 crore. The quarterly profit without the impact of the above impairment is Rs. 1,043 crore, which is higher by 25 per cent on yoy basis.
During the quarter, the Company registered growth in physical performance in all segments as compared to corresponding period of the previous year with Petrochemicals Sales up by 59 per cent, Natural Gas Marketing & Transmission volumes up by 11 per cent & 6 per cent respectively, LPG Transmission volumes increasing by 22 per cent and Liquid Hydrocarbon Sales rising by 6 per cent. GAIL's PAT in the fourth quarter of FY 2016-17 rose by 6 per cent vis-à-vis the third quarter (excluding impairment of Investments in RGPPL) of current financial year, from Rs. 983 crore to Rs. 1,043 crore. During the year 2016-17, as per consolidated financial statements, the total group sales (Gross) stood at Rs. 49,237 crore and the Group PAT was Rs. 3,374 crore. CGD group companies (IGL, MGL, GAIL GAS) and PLL have continued to add to the group profit.
However, ONGC Petro Additions Ltd and Brahmaputra Cracker and Polymer Ltd., being in their first year of operation and under stabilisation did not positively contribute to the Group bottom line. Taking together the impact, EPS as per consolidated statement was Rs. 19.91 per share as against Rs. 11.05 per share in the previous year.
GAIL Chairman and Managing Director B C Tripathi said that the 1967 MW Dabhol power plant is producing just 500 MW of power and its 5 million tonnes a year LNG import facility is operating at just 1.5-2 million tonnes in absence of a breakwater to shield the port from high tidal waves. Tripathi also said that GAIL is currently executing gas pipelines worth Rs 20,000 crore and another Rs 10,000 crore worth of lines are under various stages of evaluation.
The pipelines under execution include Jagdishpur-Haldia line that will take the environment friendly fuel to the east. Current projects will be completed by 2019-20, taking GAIL's pipeline network to 15,000 km from current 11,000 km.