Mumbai: State gas utility GAIL India on Monday reported a 50 per cent jump in its second-quarter net profit on the back of higher revenue from its natural gas marketing business. Its net profit in July-September 2018 stood at Rs 1,963 crore as against Rs 1,310 crore in the same period of last fiscal, the company said.
The profit was higher “mainly due to better performance by natural gas marketing, liquid hydrocarbon (LHC) and petrochemicals segments”, it said. While GAIL sold 14 per cent more volumes of natural gas, it transported 11 per cent more LPG and petrochemical sales were up 4 per cent. Liquid hydrocarbon sales were up 1 per cent.
The profit rise was despite a one-time charge of Rs 208 crore towards doubling of gratuity ceiling to Rs 20 lakh per employee. Revenue from operations jumped 55.3 per cent to Rs 19,275 crore. GAIL said the better performance of natural gas transmission segment was supported by upward revision of tariff by Petroleum and Natural Gas Regulatory Board (PNGRB) of some of the pipeline network.
It earned Rs 194 crore from upward tariff revision for Dahej-Uran-Dabhol-Panvel pipeline, Dukli Maharajganj, Agartala Regional Network and Gujarat Regional Network and a one-time take or pay settlement of Rs 133 crore with one of the natural has customer. GAIL Chairman and Managing Director B C Tripathi said in the second quarter, the gas marketing and LHC segments performed better than the last quarter due to better margin in the segments.