GAIL profit floats 10% to Rs 664 crore in third quarter

GAIL India Ltd, the country's biggest natural gas supplier, on Tuesday reported a 10 per cent rise in its December quarter net profit on spike in margins and exemption from payment of fuel subsidy. Net profit of Rs 664.26 crore, or Rs 5.24 per share, in October-December 2015 was 9.96 per cent higher than Rs 604.08 crore, or Rs 4.76 a share, in the same period a year ago, the company said in a regulatory filing. Turnover fell 10 per cent to Rs 13,451.58 crore in the third quarter on lower gas volumes transported through the company's pipelines.

Lower gas price saw its revenue from marketing of natural gas shrink 11 per cent to Rs 11,686.53 crore in the third quarter ended December 31 but its profit from business rose almost ten times - from Rs 51.14 crore in October-December 2014 to Rs 483.42 crore in current fiscal.

Also, the company was not required to pay any fuel subsidy in the quarter as opposed to Rs 500 crore payout in the same period a year ago. GAIL as well as upstream oil and gas producers ONGC and Oil India have to make good a portion of losses retailers incur on selling domestic cooking gas (LPG) and kerosene at government controlled rates. 

The company's earnings from gas transmission business fell 16 per cent to Rs 427.69 crore on lower volumes of gas transported while it posted a loss of Rs 160.56 crore on petrochemical sales.