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Informist, Tuesday, Nov. 5, 2024

 

--GAIL Jul-Sept net profit INR 26.72 bln vs INR 24.05 bln year ago 

--Analysts saw GAIL Jul-Sept net profit INR 26.37 bln 

--GAIL Jul-Sept revenue INR 329.31 bln vs INR 318.23 bln year ago 

--GAIL Apr-Sept net profit INR 53.96 bln vs INR 38.17 bln year ago 

--GAIL Apr-Sept revenue INR 666.2 bln vs INR 640.50 bln year ago 

 

By Gopika Balasubramanium

 

MUMBAI – GAIL (India) Ltd. reported moderate growth in earnings for the September quarter compared to the previous quarter as revenue from marketing natural gas and operating profit fell sequentially. The company's operating margin also contracted in Jul-Sept compared to the previous quarter.

 

The net profit increased 11% on year, the slowest in five quarters, while it fell 1.9% sequentially. The company posted positive on-year growth in revenue for the second consecutive quarter after recording on-year decline for four quarters straight since June 2023. The company's top line declined 2.2% sequentially.

 

The company reported a consolidated net profit of INR 26.72 billion, up 11% on year for the latest quarter, marginally above analysts' estimates of INR 26.40 billion. The company's top line for the quarter was INR 329.31 billion, up 3.5% on year, but lower than the Street estimate of INR 339.10 billion.

 

In the June quarter, the company had reported a net profit of INR 27.24 billion on revenues of INR 336.92 billion.

 

For Apr-Sept, GAIL reported a consolidated net profit of INR 53.96 billion, up 41.4% from INR 38.17 billion a year ago. Revenue for the period rose 4% to INR 666.22 billion, from INR 640.50 billion in the first half of 2023-24 (Apr-Mar).  

 

GAIL incurred a capital expenditure of INR 18.85 billion during the September quarter, mainly on pipelines, petrochemicals and other segments, taking the cumulative capital expenditure in Apr-Sept to INR 35.44 billion, it said in a press release.

 

GAIL's other income for the quarter increased to INR 7.13 billion from INR 5.61 billion a year ago. The other income almost doubled sequentially.

 

The cost of materials consumed during the quarter was INR 19.55 billion, up 15% from INR 16.97 billion a year ago. Other expenses rose to INR 19.16 billion, up 6.4% on year. The depreciation and amortisation expenses rose to INR 8.15 billion, up 8.7% on year. The total expenditure for the quarter was INR 301.91 billion, up 3.2% on year from INR 292.53 billion.

 

Revenue from marketing natural gas during the September quarter was INR 287.46 billion, up 3.7% from INR 277.28 billion a year ago, but down 2.3% sequentially. The revenue from natural gas transmission services was INR 28.46 billion while that from liquefied natural gas transmission services was INR 1.86 billion. Revenue from the LNG and liquid hydrocarbon segment was INR 12.96 billion, up 25% from a year ago.

 

The petrochemical segment posted a revenue of INR 21.76 billion for the September quarter, up 25% on year. "Petrochemical segment is expected to be reasonably profitable in FY25," Sandeep Kumar Gupta, chairperson and managing director of GAIL, said in a press release.

 

The natural gas transmission volume for the September quarter was 130.63 million standard cubic metres per day. The gas marketing volume was 96.60 mscmd in Jul-Sept. The liquid hydrocarbon and polymer sales were 253,000 metric tonnes and 226,000 metric tonnes, respectively, for the latest quarter.  

 

On Tuesday, shares of the company closed flat at INR 196.41 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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