Gas Authority of India Reports 244% Jump in Q1 Profit

Gas Authority of India (Gail) registered a 244% increase in net profit in the first quarter that ended on June 30 of fiscal year 2016-17 (Apr-Mar), boosted by a turnaround in its petrochemical business and partial sale of stake in Mahanagar Gas, a Mumbai focused gas distributor.

The company’s net profit rose to rupees 13.35bn ($200mn) from rupees 3.88bn in the corresponding quarter of the last fiscal, the company said on September 7. Company’s net profit excluding gain from stake sale in Mahanagar Gas was rupees 8.46bn, up 118% from previous year. Gail’s profit before tax for the first quarter increased by 180% to rupees 16.86bn against rupees 6.02bn in the corresponding quarter of the last fiscal.

During the quarter, company’s petrochemical business saw a turnaround with production and sales rising 149% and 121% respectively as compared to corresponding period of the previous year. This resulted in revenue increase in this segment by 95% to rupees 11.33bn and the profit stood at rupees 90mn in this quarter as against loss of rupees 3.9bn in the corresponding period of the previous year.

The increase in net profit during Q1 was also supported by increase in natural gas sales and transmission volumes which increased by 15% and 10% respectively, the company said.

Another major Indian gas player, Petronet LNG also had a good Q1. On September 5, the company reported a 55% jump in net profit for the quarter.

Shardul Sharma