The Hindu Business Line : GAIL net up 31% on petrochem, gas trading biz

New Delhi, July 29 A higher revenue from petrochemicals and gas trading and transportation business has boosted GAIL (India) Ltd’s net profit for the first quarter of the current fiscal by 31 per cent.

This is despite a substantial subsidy outgo which the company had to incur to partially offset the revenue loss suffered by public sector oil marketing companies.

GAIL’s PAT increased to Rs 897 crore in the first quarter as against Rs 685 crore in the corresponding quarter last year.

According to a statement issued by the company, the increase in revenue was mainly due to higher trading and transportation of natural gas, higher unit realisation from petrochemicals and liquid hydrocarbons products. GAIL registered a 35 per cent increase in turnover to Rs 5,731 crore during the first quarter (Rs 4,246 crore).

It has shared Rs 475 crore, including balance Rs 87 crore relating to fourth quarter of the FY 08, towards LPG and kerosene subsidy in the first quarter of the current financial year as compared with a provisional subsidy of Rs 272 crore during the corresponding period the previous year.

During the quarter, revenue from petrochemicals business increased by 20 per cent to Rs 801 crore (Rs 666 crore). However, the revenues from LPG transmission during the first quarter decreased by 7 per cent to Rs 86 crore (Rs 92 crore). The revenues from LPG and liquid hydrocarbons business during the quarter have increased by 25 per cent to Rs 800 crore as against Rs 640 crore in the corresponding period of last year.

While the revenues from natural gas trading during Q1 of FY 09 stood at Rs 4,119 crore (Rs 2,956 crore), the revenues from natural gas transmission were Rs 621 crore (Rs 540 crore).

GAIL shares on the BSE closed at Rs 362.50 on Tuesday after touching the day’s high at Rs 377.70.