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Updated January 29th, 2024 at 17:54 IST

More business operations see GAIL Ltd report soaring Q3 net profit

A key contributor to this financial outcome was the pre-tax earnings from the gas transportation business, which nearly tripled.

Reported by: Business Desk
GAIL
GAIL | Image:GAIL
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GAIL's Q3 profit: GAIL Ltd, the state-owned gas utility giant, witnessed a remarkable tenfold surge in its net profit for the third quarter of the fiscal year 2023, showcasing strong performance across its diversified business segments, including gas transportation, marketing, and petrochemicals.

The standalone net profit for the October-December period reached Rs 2,842.62 crore, marking a significant increase from Rs 245.73 crore reported in the same quarter a year ago. This performance outpaced the preceding quarter's net profit of Rs 2,404.89 crore.

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A key contributor to this financial outcome was the pre-tax earnings from the gas transportation business, which nearly tripled to Rs 1,215.07 crore. Notably, the natural gas marketing segment experienced a notable turnaround, reporting a pre-tax profit of Rs 1,880.42 crore, a significant improvement from the loss of Rs 86.02 crore in the corresponding period of 2022.

Revenue from operations

The petrochemicals business also saw a positive turn, achieving a small pre-tax profit of Rs 62 crore, compared to a loss of Rs 349 crore a year ago. Although the revenue from operations remained nearly flat at Rs 34,253.52 crore, the overall financial performance showcased the company's resilience.

For the nine-month period ending December 31, GAIL reported a 42 per cent increase in net profit, reaching Rs 6,659.51 crore on a revenue of Rs 98,303.61 crore. The surge in profits was attributed to factors such as higher gas trading margins, increased transmission volume, and a rise in transmission tariffs.

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Improved physical performance

GAIL's Chairman and Managing Director, Sandeep Kumar Gupta, emphasised the improved physical performance across major business verticals during the quarter. He highlighted the profitability of the petrochemical segment, attributing it to enhanced plant efficiency, improved capacity utilisation, and optimisation measures.

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GAIL's solid financial standing allowed it to declare an interim dividend of 55 per cent for the financial year 2023–24, equivalent to Rs 5.50 per equity share. Gupta also disclosed that the company invested Rs 6,583 crore in capital expenditure during the period from April 2023 to December 2023, primarily directed towards pipelines, petrochemicals, and equity contributions to joint ventures.

The company transported an average of 121.54 million standard cubic metres per day of natural gas during the quarter, and gas marketing volume reached 98.14 million standard cubic metres per day. Liquid hydrocarbon sales stood at 249,000 metric tonnes, and polymer sales witnessed a notable 28 per cent increase, reaching 215,000 metric tonnes.

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(with PTI inputs)

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Published January 29th, 2024 at 16:55 IST

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