GAIL (India) Q2 consolidated net profit falls 34.73% to ₹1,167.58 crore

Our Bureau New Delhi | Updated on November 08, 2019 Published on November 08, 2019

GAIL (India) Limited has reported a ₹ 1,167.58 crore consolidated net profit for the second quarter of financial year 2019-2020. This is 34.73 per cent lower than the ₹ 1,788.98 crore net profit reported by the company in the corresponding quarter of financial year 2018-2019.

In the second quarter, total income for GAIL (India) group fell 5.21 per cent to ₹ 18,485.19 crore. Total income stood at ₹ 19,500.64 crore in the corresponding quarter of last fiscal.

Despite the falling revenue, total expenses for the company rose marginally. Total expenses in the quarter stood at ₹ 17,097.03 crore, up from ₹ 17,010.12 crore in the comparable quarter of the previous financial year,

According to officials in the know, the lower profits are because of variations in international petrochemical and liquid hydrocarbons (LHC) prices. It is assessed that there has been a decline in the sale price that haspushed the profits lower.

On a sequential basis, GAIL assesses that the market prices of Petrochemicals and Liquid Hydrocarbons (LHC) declined by 8 per cent and 25 per cent respectively coupled with lower gas prices in international market which adversely impacted the profits of the company in the quarter as compared to the first quarter of previous year.

Commenting on the performance, Ashutosh Karnatak, Chairman & Managing Director, at GAIL said that the second quarter has been better than the first quarter due to increased operational efficiency.

He said that GAIL’s petrochemical plant is running at more than 100 per cent capacity. Further, volume of gas transmission is also showing upward trend to create gas based economy in the country.

Published on November 08, 2019
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