The Hindu Business Line : GAIL posts 43% rise in Q1 net

THE board of GAIL (India) Ltd on Wednesday announced a 43-per-cent increase in profit after tax (PAT) for the first quarter of the current fiscal. The PAT has increased to Rs 483 crore from Rs 339 crore in the corresponding quarter.

According to the company, its turnover (excluding excise duty) has increased by 14 per cent to Rs 3,288 crore during the quarter under review as against Rs 2,874 crore in the same period last year. The company's gross margin is also up by 25 per cent, GAIL said.

A provision of Rs 153 crore has been made from sales towards under recoveries of the petroleum products sensitive to price and consumer index in terms of the instructions from the Ministry of Petroleum and Natural Gas as compared with Rs 226 crore in the corresponding quarter of previous year, the company said.

Commenting on the first quarter performance, Mr Prashanto Banerjee, Chairman and Managing Director, said, "We could show an increase of 43 per cent in PAT primarily on account of a reduction in subsidy burden by 32 per cent."

The company's physical performance has registered improvements in natural gas trading, natural gas/LPG transmission, and other liquid hydrocarbons business segments. The natural gas trading registered an increase of 15 per cent to Rs 2,205 crore from Rs 1,922 crore.

GAIL's interest and financing charges declined by 27 per cent to Rs 30 crore from Rs 41crore in the previous quarter, the company said. Earnings per share increased to Rs 5.72 from Rs 4.01.

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