Higher subsidy outgo notwithstanding, GAIL (India) Limited's net profit for the second quarter of the current fiscal increased by 19 per cent to Rs 1,094 crore against Rs 924 crore in the corresponding period previous year.
The increase in net profit was because of higher volumes from natural gas trading, petrochemical sales, better price realisation on liquid hydrocarbons and LPG business, Mr B C Tripathi, Chairman and Managing Director, GAIL said.
During the quarter, revenues from LPG and liquid hydrocarbons business increased by 34 per cent to Rs 988 crore (Rs 737 crore), the company said.
GAIL, along with upstream companies, partially compensates the public sector oil retailers for selling petroleum products below the market price. The upstream companies extend discounts to PSU retailers on crude oil and product sales. For the quarter, GAIL's subsidy outgo was Rs 567 crore (Rs 347 crore).
Petrochem business
The net sales from petrochemicals business increased by 30 per cent to Rs 938 crore (Rs 721crore). The net revenue from natural gas trading went up by 20 per cent to Rs 7,575 crore (Rs 6,290 crore). Revenue from natural gas transmission business increased to Rs 980 crore (Rs 979 crore) in the corresponding period of the previous year.
The revenues from LPG transmission during the quarter stood at Rs 110 crore (Rs 114 crore).
GAIL registered a turnover of Rs 9,699 crore in the second quarter, a 20 per cent increase over the turnover in the corresponding period during the last financial year.
Capex plan
The company has planned a capital expenditure of Rs 7,200 crore for this fiscal through an overseas loan (ECB) of $ 300 million in the next couple of months.
Speaking about LNG trading business in Singapore, Mr Tripathi said the office will become operational from November 1. This is being done to get an advantage in pricing, taxation and sourcing as it would mean going near the main supplies, he added.
With the falling gas output from domestic sources the companies have been importing gas to meet the demand. GAIL has sourced four spot LNG cargoes and expects to source additional eight cargoes in the second half of the year, Mr Tripathi said.
On Dabhol LNG terminal, he said it will be commissioned in the January-March quarter of the current fiscal.
The company's share closed at Rs 425.35, up 1.75 per cent on Monday at the BSE.