GAIL (India) Ltd on Friday reported a 64 per cent year-on-year drop in net profit to ₹604 crore for the third quarter of fiscal 2014-15. In the same quarter last year the company’s net profit was ₹1,679 crore.

During the quarter the company’s net revenue also dropped 6.5 per cent to ₹14,934 crore from ₹ 15,980 crore in the same quarter last year.

The company attributed the drop in net profit to the subsidy burden of ₹500 crore pertaining to the second quarter of fiscal 2014-15, which was accounted only in the third quarter, lower offtake of long-term contracted RLNG by power and fertiliser plants, reduction in domestic gas availability by over 5 mscmd, and the higher feedstock cost of petrochemicals.

On Friday, the company’s shares closed 0.97 per cent lower on the BSE at ₹ 419.95.

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