NEW DELHI: Country’s largest natural gas company GAIL India on Thursday reported a six-fold year-on-year increase in its net profit for the first quarter ended June 2021 (Q1FY22), boosted by higher sales and better margins. The company recorded a net profit of Rs 1,529.92 crore during the quarter, against Rs 255.51 crore a year ago.
However, while profits surged on a year-on-year basis, they stood nearly 20% lower compared to the previous quarter ended March 2021. This sequential fall was primarily driven by the impact of the second Covid-19 wave, which was less severe than the initial outbreak last summer.
“The increase in the profits is mainly attributable to better physical performance in natural gas marketing and transmission, improved margins in gas marketing due to favourable market conditions and better price realisation in petrochemicals and liquid hydrocarbons,” the company said. “The volume growth is due to the normalcy of the business activities as against nationwide lockdown during Q1 FY21,” it added.