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GAIL (India) Limited has reported a ₹ 1,963 crore net profit for the second quarter of financial year 2018-2019. This is 50 per cent higher than the ₹ 1,310 crore bottomline reported by the company in the corresponding quarter of the last fiscal. GAIL’s
In a company statement, B C Tripathi, CMD, GAIL said, “In the second quarter, the Gas Marketing and LHC Segments performed better than the last quarter due to better margin in the segments. The Petrochemical segment has shown marked improvement in terms of physical volume growth though margin was under pressure due to increase in input cost primarily due to increase in crude price and adverse exchange rate.”
Total income rose from ₹ 12,682.88 crore in the same period of the preceding fiscal to ₹ 19,640.96 crore in the quarter under review.
The company reported a better performance by Natural Gas Marketing, Liquid Hydrocarbon (LHC) and Petrochemicals Segments.
The increase in net profit for the second quarter of financial year 2018-2019, on year on year basis, was supported by increase in Natural Gas Marketing volumes by 14 per cent, LPG Transmission by 11 per cent, Petrochemicals Sales by 4 per cent and Liquid Hydrocarbon Sales by 1 per cent.
The current quarter also includes the effect of an upward tariff revision of ₹ 194 crore approved by the Petroleum and Natural Gas Regulatory Board from April 1, 2018 for Dahej-Uran-Dabhol-Panvel Pipeline, Dukli, Maharajganj, Agartala, Regional Network and Gujarat Regional Network and a one-time take or pay settlement of ₹ 133 crore with one natural gas customer, a company statement said.
A one-time charge has also been made in the current quarter for ₹ 208 crore towards increase in gratuity ceiling from ₹ 10 lakh to ₹ 20 lakh per employee. The company also received a favourable judgement from the Gujarat High Court in respect of long pending Central Sales Tax Demand of ₹ 4,962 crore on Natural Gas stock-transferred from Gujarat to other States, the statement said.
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