GAIL India Q3 profit rises to 18%

GAIL India Q3 profit rises to 18%

New Delhi: GAIL (India) Limited registered 18% growth in Profit after Tax (PAT) in Q3 of FY20 to Rs. 1,251 crore as against Rs. 1,064 crore in Q2 FY20, said a statement on Monday.

Profit before Tax (PBT) witnessed growth of 22% at Rs 1,872 crore and Gross Margin witnessed growth of 19% at Rs. 2,385 crore.

The rise in profit is mainly due to better physical performance, better margins in Gas Marketing and LHC, the statement said.

The company’s turnover in the quarter was maintained at Rs. 17,735 crore as against Rs.18,010 crore in Q2 FY20 with volume growth mainly in Gas transmission, Gas Trading, LPG transmission, and LHC businesses neutralizing the drag in prices of Petrochemicals and Natural Gas.

In the nine month period ended December 2019, Gross Sales of Rs 54,021 crore was recorded as against Rs 56,101 crore in the corresponding period of last year.

PBT stood at Rs 5,388 crore against Rs 7,345 crore and PAT at Rs. 3,602 crore against Rs. 4,903 crore. PBT and PAT witnessed fall of 27% mainly due to  reduction in Petrochemical and LHC prices by around 22% and 17% respectively.

On a consolidated basis, Gross Sales stood at Rs 54,525 crore upto Q3 FY20 as against Rs 56,892 crore upto Q3 FY19.  PAT was Rs 4,701 crore upto Q3 FY20 as compared to Rs 5,029 crore upto Q3 FY19.

Dr. Ashutosh Karnatak, Chairman & Managing Director, GAIL stated that Company had been able to achieve growth in profit in Q3 FY20 despite significant decline in Petrochemicals prices.

This has been due to better operational efficiency and physical performance in comparison to Q2 FY20 accompanied with an increased capacity utilisation of the petrochemical unit at Pata, over 100%. 

He also stated that GAIL is in step with the Government of India’s vision of expanding the share of natural gas to 15% in the energy basket of India by working relentlessly in reshaping the gas economy of the country.

The Company has declared an interim dividend @ 64% for the financial year FY 2019-20 i.e. Rs 6.40 per equity share.