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Informist, Thursday, Jan. 30, 2025

MUMBAI – GAIL (India) Ltd. expects its gas transmission volumes to increase by 10 million standard cubic metres per day on a year-on-year basis during the next two-three years, its executives informed analysts during its post-earnings conference call on Thursday. For 2024-25 (Apr-Mar), gas transmission volume is expected to be in the range of 129-130 mscmd, similar to the first nine months of the financial year.

The company's capital expenditure for the December quarter was INR 21.22 billion. Of this, the company spent INR 4 billion towards pipelines, INR 4 billion towards petrochemicals, INR 7.50 billion towards its city gas distribution project, and INR 400 million towards operational capital expenditure, it said.

The Maharatna enterprise maintained its guidance of earning INR 45 billion from gas marketing margins in the current financial year, excluding the exceptional income of INR 24.40 billion. Including this one-time income, it would be around INR 70 billion, the company said. GAIL expects its hedging spread to be around INR 45 billion for the next financial year. 

GAIL, which has authorisation in six geographical areas, currently has an infrastructure of 195 compressed natural gas stations and 353,000 domestic piped natural gas connections. In Oct-Dec, the company added 5,000 new piped natural gas connections, and plans to add 120,000 more in the next two years. Further, it plans to add 80 new compressed natural gas stations in the next two years. 

Its wholly-owned subsidiary GAIL Gas Ltd., a city gas distributor, added 25,000 new domestic piped natural gas connections during the December quarter through its joint ventures. While this subsidiary currently has 1.06 million domestic piped natural gas connections, it plans to add 500,000 more in the next two years. The arm added 5 new CNG stations in the December quarter, and plans to add 170 more in the coming two years. 

GAIL's Mumbai-Nagpur-Jharsuguda pipeline project, along with Jagdishpur-Haldia, Bokaro-Dhamra, Kochi-Koottanad-Bengaluru-Mangaluru, and Srikakulam-Angul pipeline projects, will be completed in the coming financial year, it said in the conference call. Its Gurdaspur-Jammu project will be completed in FY27.

GAIL expects its 60 kilotonne per annum polypropylene unit at Pata, 500 kilotonne per annum polypropylene unit at Usar, and 1,250 kilotonne per annum polypropylene unit at GAIL Mangalore Petrochemicals to be commissioned in FY26. 

With gas for liquefied petroleum gas set to be diverted to city gas distribution companies as per the government's early January order, the company expects a drop of approximately 74,000 tonnes in gas production in the March quarter.

GAIL disclosed its December quarter earnings during market hours on Thursday. It reported a net profit of INR 38.67 billion on revenue of INR 349.58 billion. Its shares closed at INR 167.11 on the National Stock Exchange, up 1.1% from the previous close.  End

Reported by Anand JC

Edited by Tanima Banerjee

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