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Higher gas trading and transmission margins have helped GAIL (India) Ltd report a 13 per cent increase in net profit for the third quarter of the current fiscal. GAIL has registered a net profit of Rs 968 crore as against Rs 860 crore in the corresponding quarter last fiscal.
“The increase in net profit during the third quarter of the current fiscal was mainly due to the increase in natural gas transmission, LPG transmission and natural gas trading business,” Mr B.C. Tripathi, Chairman and Managing Director, GAIL, told newspersons after the board meeting.
GAIL reported a 35 per cent increase in turnover to Rs 8,365 crore (Rs 6,212 crore) during the quarter.
GAIL's Rs 10 shares were down 1 per cent at Rs 477.05 on the NSE.
The revenues from natural gas transmission business during the quarter jumped by 17 per cent to Rs 1,001 crore (Rs 853 crore) and sales from natural gas trading was up by 50 per cent to Rs 6,773 crore (Rs 4,527 crore).
The revenues from LPG transmission have increased by 11 per cent to Rs 129 crore (Rs 116 crore). However, the company reported a 30 per cent drop in net sales from its petrochemicals business at Rs 571 crore (Rs 815 crore).
For the quarter, it has extended discounts to the tune of Rs 418 crore (Rs 455 crore) to the public sector oil marketing companies (OMCs) for one-third of the revenues they lose on selling diesel, domestic LPG and kerosene at a controlled price.
Expansion, Funding plans
By December-end, GAIL plans to add another 1,500 km to its existing gas transmission network of 8,100 km, Mr Tripathi said, adding that it is estimated to cost about Rs 10,000 crore. The additional network will raise GAIL's transmission capacity to 260 mscmd from the current 180 mscmd.
GAIL has raised Rs 500 crore through a bonds issue and is planning to further raise $150 million through external commercial borrowings (ECB) next month. The company is also planning to take a loan of Rs 300 crore from the Oil Industry Development Board (OIDB) to meet its capex requirements. It is looking at a foreign currency bond (FCB) issue of $150-200 million in the next fiscal.
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