GAIL (India) reported a 23 per cent drop in net profit for the June quarter due to lower earnings from its natural gas transmission and petrochemicals business, and a subsidy burden of ₹500 crore.
During the quarter, the company’s net profit stood at ₹621 crore against ₹808 crore in the corresponding quarter last year.
GAIL’s turnover stood at ₹13,337 crore during the period compared with ₹12,856 crore a year earlier.
Though GAIL’s subsidy outgo during the first quarter was lower than the ₹700-crore paid in the year-ago period, the sudden decision to shoulder the burden disturbed the numbers, a company official said. GAIL shares the subsidy burden on LPG, which is paid to the oil marketing companies for selling petroleum products at controlled prices.
Revenue from the petrochemicals business fell around 10 per cent to ₹993 crore, while the revenue drop in the natural gas transmission business was 34 per cent at ₹660 crore.
“During the quarter, the natural gas transmission was 96.91 million standard cubic metres a day (mscmd) against 99.32 mscmd in the same quarter last year,” the company said in a statement.
On Monday, GAIL’s shares closed 4.34 per cent lower on the BSE at ₹390.15.