State-run Gas Authority of India (GAIL) on Tuesday reported a 87 per cent year-on-year (y-o-y) jump in its consolidated net profit to ₹2,442 crore for the July-September quarter in FY24, aided by better performance of its gas transmission business. The country’s largest gas utility’s net profit in Q2 FY24 rose 36 per cent sequentially.

GAIL’s consolidated total income in the September quarter stood at ₹33,255 crore as against ₹38,970 in Q2 FY23 and ₹33,001 crore in Q1 FY24.

GAIL CMD, S K Gupta, said that the company has performed on the strength in the gas transmission segment which will continue to perform better.

Lower realisation

Performance during the quarter was constrained due to lower realisation in polymers and LPG, which are expected to be better, going forward. The company incurred a capex of around ₹4,853 crore during H1 FY24 mainly on pipelines, petrochemicals, equity to JVs, etc, he added.

Revenue from operations stood at ₹65,898 crore in H1 FY24 (₹76,671 crore). Net profit (excluding non-controlling interest) was ₹4,236 crore in H1 FY24 (₹4,568 crore).

During the September quarter, natural gas transmission volume stood at 120.31 million standard cubic meters per day (MSCMD) in Q2 FY24 as against 116.33 MSCMD in Q1 FY24.

Gas marketing volume stood at 96.96 MSCMD as against 98.84 MSCMD in the previous quarter. Liquid hydrocarbons (LHC) sales stood at 242 thousand tonnes (TT) as against 247 TT, and polymer sales stood at 168 TT as against 162 TT in the previous quarter.

“The parent company has received an opinion of the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) on May 26, 2023, on reassessment of residual value of natural gas/ LPG transmission pipelines and the parent company is reviewing the same and necessary accounting, if any, will be done in due course,” GAIL said in its results filing on the BSE.

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