State-run GAIL on Thursday reported a steep 82 per cent y-o-y decline in its consolidated net profit at ₹634 crore during the March quarter in FY23 as high LNG prices and supply disruptions impacted margins and sales.
However, the country’s largest gas utility posted a 53 per cent growth in profit sequentially. GAIL’s consolidated total income rose 22 per cent y-o-y to ₹33,811 crore, but on a q-o-q basis, its income fell by 7 per cent.
Speaking to reporters, GAIL CMD S K Gupta said “Adverse prices and supply disruptions impacted practically every vertical of GAIL’s business. Whether it is transmission. In petrochemicals also due to high prices we have to keep running our plants at lower levels, which impacts margins. On the marketing side also, we took hits.”
Gupta expressed confidence that with softening international liquefied natural gas (LNG) prices, which are in range of $9 per mBtu at present, and resumption of supplies from Gazprom Marketing and Singapore (GMTS), the company believes that FY24 should be a promising year. Domestic consumption is expected to grow by 6-7 per cent Y-o-Y.
“GAIL has been declared a successful applicant for JBF petrochemicals. This entails an upfront outlay of around Rs 2,100 crore and we will spend an almost similar amount in the next two years to bring the plant to a commissioning stage,” he added.
During the quarter, natural gas transmission volume stood at 108.23 million standard cubic meters per day ( mscmd) in Q4 FY23 against 103.74 mscmd in Q3 FY23. Gas marketing volume stood at 96.46 mscmd against 89.89 mscmd.