GAIL (India) Ltd has reported a 10 per cent increase in net profit for the third quarter of fiscal 2015-16 driven by a strong performance of its natural gas marketing business.

During the quarter, the company reported a net profit of ₹ 664.26 crore against ₹ 604.08 crore in the same quarter last year.

The rise in net profit comes despite a 10 per cent drop in revenue during the quarter to ₹ 13,451.58 crore compared with ₹ 14,969.41 crore in the same quarter last year.

The company’s profit before interest and tax from natural gas marketing business increased to ₹ 483.42 crore in the third quarter compared with ₹ 51.14 crore in the same quarter last year.

In a filing to the BSE, the company said that the Petroleum and Natural gas Regulatory Baord has issued various provisional transportation tariff orders in respect of pipeline tariffs. However, it added that some of these orders have been contested at the Appellate Tribunal for Electricity.

While the natural gas marketing did well, the company’s petrochemicals business reported a loss before interest and tax of ₹ 160.56 crore during the quarter compared with ₹ 4.77 crore profit before interest and tax in the same quarter last year.

The company also said in its filing that investment in equity shares of Ratnagiri Gas and Power Pvt Ltd amounting to ₹ 974.31 crore has been started as on December 31.

“Further to this, during the period RGPPL has obtained in-principle approval of its board of directors for demerger of its power generation business and LNG business into separate companies,” the filing stated.

The company shares ended 1.48 per cent higher at ₹ 348.60 on the BSE.

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