NEW DELHI: State-owned GAIL (India) Ltd on Thursday reported its higher quarterly net profit in three months to December 2021 as a rise in natural gas prices helped improve its margins.
Net profit of Rs 3,287.99 crore, or Rs 7.40 per share, in October-December 2021 was more than double as compared to Rs 1,487.33 crore, or Rs 3.30 a share, in the same period a year back, the company said in a statement.
The profit was 15 per cent higher than the preceding quarter's.
While natural gas transmission volumes and profitability remained almost unchanged, the firm saw its profitability from the marketing of the fuel jump to Rs 1,749.71 crore in the third quarter of the current fiscal year as against a loss of Rs 73.70 crore a year back.
Profitability from its LPG and liquid hydrocarbon business also jumped 200 per cent.
"GAIL has surpassed all parameters of financial performance in the third quarter of the financial year 2021-22 on account of improved gas marketing spread, better product prices and improved operating efficiency in petrochemicals and liquid hydrocarbons," the statement said.
Revenue rose 66 per cent Rs 26,427.37 crore.
In the first nine months of the current fiscal year, the company posted a net profit of Rs 7,681 crore on a revenue of Rs 64,678 crore "mainly on account of improved gas marketing spread, better product prices, better physical performance in gas marketing and transmission segment."
GAIL Chairman and Managing Director Manoj Jain said this is the highest-ever quarterly revenue from operations and net profit of the company.
"In fact, during the 9-month period ended 31st December 2021, GAIL has already surpassed the highest ever PAT achieved in any of the previous financial years," he said.
GAIL incurred a capex of Rs 5,034 crore mainly on pipelines, petrochemicals, equity to joint ventures.
During the quarter, GAIL acquired 26 per cent stake from IL&FS in ONGC Tripura Power Company, he said.
"The acquisition would be synergetic and enable GAIL to stronghold its presence in North East region of the country."
He said GAIL has commissioned India's first-of-its-kind pilot project for mixing hydrogen into the City Gas Distribution network of AGL at Indore, Madhya Pradesh.
This project marks the stepping stone of India's journey towards a hydrogen-based and carbon-neutral future, he said.