The company had earned a net profit of Rs 621.44 crore in the April-June quarter of the previous fiscal, a company press statement said here.
The net profit was down despite the company not having to pay any fuel subsidy in the current fiscal. In Q1 of <g data-gr-id="50">2014-15</g> financial year, GAIL had paid Rs 500 crore so that fuel retailers could sell diesel, domestic LPG and kerosene at government controlled rates.
The government has in Q1 exempted GAIL and oil producers ONGC and Oil India from making up a portion of revenue that retailers lose on fuel sales. The government will meet all of the revenue loss or under-recoveries.
“The decrease in profit was mainly due to lower price realisation of LPG, other liquid hydrocarbons and petrochemicals and reduced production of LPG, petrochemicals due to shut down in Pata Petrochemical plant,” it said.
Also impacting the profit was increased interest and depreciation charges after commissioning of <g data-gr-id="55">petrochemical</g> expansion project. Turnover dipped from Rs 13,544.66 crore for the quarter ended June 30, <g data-gr-id="54">2014</g> to Rs 12,643.86 crore for the quarter ended June 30, 2015.
GAIL said revenue from natural gas transmission rose 40 per cent to Rs 925 crore in <g data-gr-id="58">April-June</g> but the same from natural gas sales dropped to Rs 10,581 crore from Rs 11,669 crore in Q1 of last fiscal. Revenue from petrochemical business almost halved to Rs 516 crore as against Rs 993 crore in April-June of <g data-gr-id="57">previous</g> year.
Revenue from LPG transmission business rose 23 per cent to Rs 136 crore. The same from LPG and other liquid hydrocarbons was lower at Rs 929 crore in Q1 of current fiscal as compared to Rs 1,260 crore a year ago. GAIL transported 87.48 million standard cubic meters per day of natural gas in April-June as opposed to 96.91 <g data-gr-id="59">mmscmd</g> a year ago. Polymer production almost halved to 51,000 tonnes while other liquid hydrocarbons output too fell to 278,000 tons from 327,000 tonnes in Q1 of <g data-gr-id="60">previous</g> year.
Prime Minister Narendra Modi will lay <g data-gr-id="51">foundation</g> stone of 2,000 km Jagdishpur-Haldia gas pipeline on July 25 in Patna, which will provide feedstock for <g data-gr-id="46">Barouni</g> fertiliser plant in Bihar. The pipeline will also provide city-based gas to Patna.
The Rs 10,000-crore Jagdishpur-Haldia pipeline is being targeted for completion by 2019. “Prime Minister will lay the foundation stone of the Jagdishpur-Haldia gas pipeline in Patna on July 25 that will also provide the gas connectivity to the <g data-gr-id="53">Barouni</g> fertiliser plant,” a source said.
Modi will be accompanied by the Fertiliser Minister Ananth Kumar, Petroleum Minister Dharmendra Pradhan among others. It would also feed to the gas requirement of CNG for automobiles and piped cooking gas for households in cities along the route.
Cairn India scrip gains over 6%
Shares of Cairn India on Thursday gained over 6 per cent amid reports that its erstwhile parent firm Cairn Energy may vote against the merger of the company with Vedanta. The stock ended the day 6.20 per cent higher at Rs 177.30 on the BSE. During the day, it rose by 10.33 per cent to Rs 184.20.
On the NSE, shares of the company jumped 6.43 <g data-gr-id="74">per cent</g> to Rs 177.70. Meanwhile, the BSE has sought clarification from Cairn India with respect to news that Cairn Energy is set to vote against Vedanta’s Cairn India offer.
The minority shareholders of Cairn India have raised concerns over the company not getting a “fair valuation” in the USD 2.3 billion all-share <g data-gr-id="73">merger</g> with parent Vedanta Ltd.