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GAIL profit jumps 42% to Rs 1,303 cr

GAIL profit jumps 42% to Rs 1,303 cr
Net profit for July-September rose to Rs 1,302.9 crore from Rs 9,15.67 crore in the same period a year ago, the company said in a filing to the stock exchanges.

GAIL, which along with state explorers ONGC and Oil India, met a part of the revenue loss that fuel retailers incurred on selling diesel, domestic LPG and kerosene at government controlled rates, did not pay any fuel subsidy in July-September quarter, 2014-15. The subsidy payout was by way of discount on crude oil and LPG they sold to the refiners.

'The company provided nil discount for the quarter ending 30 September, 2014 (previous year corresponding quarter: Rs 698.68 crore) as the company has not received orders from Petroleum Ministry relating to sharing of under-recoveries on LPG for the quarter,' GAIL said.

The provisional discount provided in April-September was Rs 500 crore as compared to Rs 1,398.68 crore in the same period last fiscal.

'Effective 1 April, 2014, the company has revised the useful life of fixed assets... for the purposes of providing depreciation on fixed assets. This resulted in increase in profit before tax to the extent of Rs 69.37 crore during the quarter ending September 30 and Rs 138.74 crore in half year ended September 30,' GAIL said.

GAIL said with oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) fixing lower tariff for various pipeline network effective from 20 November, 2008, the company has 'derecognised the revenue by an amount of Rs 192.84 crore during the quarter (previous year corresponding quarter: nil) and Rs 434.43 crore in first half.'

Revenue was marginally higher at Rs 14,063.18 crore in July-September quarter when compared with Rs 13,944.55 crore a year ago.

GAIL said that during July-September quarter, 2014-15 natural gas sales dropped to 68.95 million standard cubic meters per day from 78.58 mmscmd during the same period of last fiscal.

Gas transmission reduced to 91.18 mmscmd in July-September quarter against 95.21 mmscmd a year ago. Petrochemical production however rose to 119,000 tons from 114,000 tons in Q2 of last fiscal. Petrochemical sales were marginally higher at 110,000 tons against 108,000 a year ago.


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