State-owned gas utility GAIL (India) Ltd on Thursday reported more than tripling of its fourth-quarter net profit after the natural gas transmission and petrochemical business saw a turnaround.
Earnings from natural gas marketing jumped to Rs 1,390 crore in January-March 2024 from Rs 487.40 crore a year back.
State-owned gas utility GAIL (India) Ltd on Thursday reported more than tripling of its fourth-quarter net profit after the natural gas transmission and petrochemical business saw a turnaround.
Its standalone net profit of Rs 2,176.97 crore in January-March - the fourth quarter of 2023-24 - was 261 per cent more than Rs 603.52 crore net profit in the same period last year, according to stock exchange filing by the company.
The net profit was, however, 26 per cent lower than Rs 2,842.62 crore earnings in the preceding quarter of October-December.
The year-on-year rise in profit was aided by a turnaround in the natural gas transmission and petrochemicals business and an uptick in gas marketing.
Against a loss of Rs 16.41 crore in the gas transmission business in January-March 2023, India's largest gas transportation and marketing firm booked a pre-tax profit of almost Rs 980 crore. Also, the petrochemical business had a pre-tax profit of Rs 262.34 crore compared to a loss of Rs 401 crore in the previous year.
Earnings from natural gas marketing jumped to Rs 1,390 crore in January-March 2024 from Rs 487.40 crore a year back.
Its revenue from operation was almost flat at Rs 32,334.50 crore.
For the full 2023-24 fiscal (April 2023 to March 2024), GAIL reported a net profit of Rs 8,836.48 crore on a revenue of Rs 1.3 lakh crore. This was higher than Rs 5,301.51 crore profit on a revenue of Rs 1.44 lakh in the previous 2022-23 fiscal year.
GAIL said its board approved an investment of Rs 1,792 crore in laying a pipeline from Vijaipur in Madhya Pradesh to Pata in Uttar Pradesh to transport feedstock for its petrochemical plant.
The proposed pipeline, which will have a capacity to move 0.95 million tonnes per annum of liquid products, will be completed in 32 months, it added.
During the year, natural gas transmission volume registered an increase of 12 per cent to 120.46 million standard cubic meters per day as against 107.28 mmscmd in FY23, according to a company statement.
Gas marketing volume stood at 98.45 mmscmd in FY24 as compared to 94.91 mmscmd in FY23. Polymer sales almost doubled to 7,87,000 tonnes.
In the January-March quarter, gas transmission volume stood at 123.65 mmscmd over 121.54 mmscmd in Q3 FY24. Gas marketing volume stood at 99.90 mmscmd as against 98.14 mmscmd in the previous quarter.
Sandeep Kumar Gupta, Chairman and Managing Director of GAIL, said that the robust performance during FY 2024 is primarily driven by better physical performance across all major segments, despite lower prices in petrochemicals and liquid hydrocarbons.
He also stated that the company has incurred a capex of Rs 11,426 crore during FY24.