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Kamal Narang

Mr U.D. Choubey (right), Chairman & Managing Director, GAIL, and Mr R.K. Goel, Director-Finance, announcing the financial results of the company at a press conference in the Capital on Tuesday. —

Our Bureau

New Delhi, May 13 GAIL (India) Ltd saw a six per cent jump in its net profit for the fourth quarter of financial year 2007-08 at Rs 722 crore (Rs 681 crore in the same period previous year). For the fiscal 2007-08 the company’s profit after tax (PAT) was up by nine per cent to Rs 2,601 crore (Rs 2,387 crore).

The turnover for the financial year 2007-08 increased by 12 per cent to Rs 18,008 crore (Rs 16,047 crore).

“Top line growth is a cumulative result of the overall increase in the natural gas business, polymer sales and also in LPG transmission,” Mr U.D. Choubey, Chairman and Managing Director, GAIL, said.

“The PAT was achieved due to higher price, higher sales of polymers, LPG and other liquid hydrocarbons, increase in gas throughput, increase in LPG transmission quantity and some decrease in subsidy sharing in domestic LPG and PDS kerosene,” the Director-Finance, Mr R.K. Goel said.

The subsidy sharing in domestic LPG and PDS kerosene for 2007-08 was Rs 1,314 crore (against Rs 1,488 crore in 2006-07). “Without the subsidy element, PAT would have increased by 33 per cent to Rs 3,468 crore,” he added. The company’s revenue from petrochemical segment has increased by 17 per cent to Rs 2,591 crore primarily due to increase in sales and average sale price.

The revenue from LPG transmission has increased by 13 per cent to Rs 389 crore. While GAIL’s revenue from natural gas trading has also increased by five per cent to Rs 12,658 crore due to increase in trading quantity and average sale price, the revenue from natural gas have transmission has increased to Rs 2,286 crore registering a growth of three per cent.

During the year 2007-08, consolidated financial statements of GAIL, incorporating the accounts of subsidiary, JVs and associated companies have also been prepared. Based on the consolidated financial statements, the total earnings of GAIL were Rs 19,441 crore and PAT was Rs 2,783 crore.

The board of directors has recommended payment of total dividend at the rate of 100 per cent on the paid-up share capital of the company for the financial year 2007-08, which includes interim dividend at the rate of 40 per cent and proposed final dividend of 60 per cent on the paid-up share capital. The company also got Moody’s rating to facilitate borrowing in domestic as well as the international markets to fund the future growth plans.

GAIL plans to import about 5-6 liquefied natural gas cargoes during the current financial year at the Dabhol LNG terminal, Mr A.K. Purwaha, Director, Business Development, said. “We are planning to issue a tender soon for sourcing spot LNG,” he said.

The company’s scrip closed at Rs 408.10 on the BSE on Tuesday, against Monday’s close of Rs 415.15.

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GAIL’s Q4 net rises 6%

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