State-run GAIL on Monday reported an 89 per cent y-o-y drop in consolidated net profit at ₹414 crore in Q3 of the current fiscal, hit by decline in sales and losses in petrochemicals business.

However, the country’s largest gas utility posted a 37 per cent y-o-y growth in consolidated total income at ₹36,390 crore during the December quarter. On a sequential basis, its net profit was lower by 69 per cent and total income also fell 6 per cent.

GAIL’s total expenses during the reporting quarter stood at ₹36,277 crore against ₹37,602 crore in Q2 FY23 and ₹22,203 crore in Q3 FY22.

Natural gas transmission

The Maharatna company said its natural gas transmission volume fell to 103.74 million standard cubic meters per day (MSCMD) in Q3 FY23 from 107.71 MSCMD in Q2 FY23. Gas marketing volumes too fell to 89.89 MSCMD from 92.54 MSCMD in the previous quarter.

Liquid Hydrocarbon (LHC) sales were higher at 248 thousand tonnes (TT) in Q3 FY23 against 231 TT in Q2 FY23, while polymer sales fell to 65 TT (108 TT) in comparison to the previous quarter.

On a consolidated basis, in Q3, GAIL reported a loss of ₹57 crore in its natural gas marketing segment against a profit before interest and tax (PBIT) of ₹1,966 crore a year ago and PBIT of ₹309 crore in Q2 FY23. The petrochemicals segment reported a loss of ₹349 crore against a PBIT of ₹365 crore and loss of ₹346 crore in Q2 FY23.

The company also suffered an inventory loss of around ₹1,100 crore due to volatility in liquefied natural gas (LNG) prices.

Revenue from operations

GAIL CMD Sandeep Kumar Gupta said the company’s revenue from operations crossed ₹1 lakh crore during nine months ended December 31, 2022, which is highest ever in any financial year.

During the December quarter, GAIL acquired 26 per cent stake in GAIL Bhuwan Ship, LNG Japonica. Diversifying the company’s business with an entry into the speciality chemical segment, GAIL board has approved 50 KTA (kilo tonnes) Isopropanol unit (IPA) at Usar where the PDHPP plant is already under construction, he added.

The company raised ₹1,575 crore by issuing redeemable non-convertible debentures at a highly competitive rate and incurred capex of around ₹6,278 crore during the nine months mainly on pipelines, petrochemicals, operational capex etc, which is 79 per cent of the annual target, Gupta said.