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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU