Gas major GAIL on Tuesday reported over 16 per cent increase on yearly basis in its net profit for the second quarter ended September 2020. However, on a sequential basis (comparison on the basis of quarter to quarter), the increase is nearly four folds.
The company said it earned a net profit of ₹1,239 crore as against ₹1,064 crore of July-September (Q2) period of FY20 and ₹256 crore of April-June (Q1) period of FY 21.
Manoj Jain, Chairman & Managing Director, GAIL, said the company’s plants and pipelines have achieved pre-Covid level of performance. “Though the capex during the first quarter was affected due to lockdown, GAIL has moved swiftly to make up for the lost time and is trying to accelerate the progress in its ongoing projects,” he said.
Both physical and financial performance of the company improved across all major segments during second quarter. After relaxations in the lockdown imposed due to Covid-19 in Q1 and with the resumption of economic activities, the volumes picked up in all segments of the company to normal levels in Q2 FY21 resulting in increase in the profit as compared to Q1 FY21. The physical performance improved by 18 per cent in natural gas transmission, 9 per cent in gas marketing, 10 per cent in LPG transmission, 22 per cent in petrochemical sales and 12 per cent in liquid hydrocarbon sales.
The company claimed that its petrochemical business has seen a major turnaround. The plant is operating back to normal levels with jump in production by 65 per cent to 221 TMT as against 134 TMT in Q1 of FY21. On account of better physical performance and price realisation, the profitability of the segment has reached ₹170 crore during Q2 FY21.
First-half profit down
On half-yearly basis, GAIL recorded turnover of ₹25,671 crore in April-September (H1) period of FY21 as against ₹ 36,286 crore in H1 FY20 and net profit of ₹1,495 crore in current half year as against ₹2,352 crore in H1 FY20.
During the quarter, the group’s consolidated turnover stood at ₹13,774 crore as against ₹12,152 crore in Q1 FY21 while the group’s net profit stood at ₹,068 crore as against ₹643 crore in Q1 FY21.