GAIL net jumps 50% in Q2

New Delhi: State gas utility GAIL India Ltd Monday reported a 50 per cent jump in its second-quarter net profit on the back of higher revenue from its natural gas marketing business.

Its net profit in July-September 2018 stood at Rs 1,963 crore as against Rs 1,310 crore in the same period of last fiscal, the company said in a statement.

The profit was higher "mainly due to better performance by natural gas marketing, liquid hydrocarbon (LHC) and petrochemicals segments", it said.

While GAIL sold 14 per cent more volumes of natural gas, it transported 11 per cent more LPG and petrochemical sales were up 4 per cent. Liquid hydrocarbon sales were up 1 per cent. The profit rise was despite a one-time charge of Rs 208 crore towards doubling of gratuity ceiling to Rs 20 lakh per employee.

Revenue from operations jumped 55.3 per cent to Rs 19,275 crore.

GAIL said the better performance of natural gas transmission segment was supported by upward revision of tariff by Petroleum and Natural Gas Regulatory Board (PNGRB) of some of the pipeline network.

It earned Rs 194 crore from upward tariff revision for Dahej-Uran-Dabhol-Panvel pipeline, Dukli Maharajganj, Agartala Regional Network and Gujarat Regional Network and a one-time take or pay settlement of Rs 133 crore with one of the natural has customer.

GAIL Chairman and Managing Director B C Tripathi said in the second quarter, the gas marketing and LHC segments performed better than the last quarter due to better margin in the segments.

"The petrochemical segment has shown marked improvement in terms of physical volume growth though margin was under pressure due to increase in input cost primarily due to increase in crude price and adverse exchange rate," he said.

GAIL Gas Ltd, a subsidiary of GAIL, and its joint venture partners won license to retail CNG in 14 cities in the recently concluded bid round.

"During the quarter, company received favourable judgement from Gujarat High Court in respect of long pending central sales tax demand of Rs 4,962 crore on natural gas stock-transferred from Gujarat to other States," the statement said without providing details.

On half yearly basis, GAIL reported a 38 per cent rise in net profit to Rs 3,222 crore.