Indian Gail's Q1 Profit Drops 80%
Gail, India’s largest gas marketing and transportation company, on August 13 announced an 80% yr/yr drop in net profit for the three months to June 30 (Q1) thanks to losses in gas marketing and petrochemicals businesses.
“The sharp decline in financial performance is mainly attributable to significant impact in physical performance due to nation-wide lockdown during the earlier part of the quarter coupled with lower price realization in petrochemicals, liquid hydrocarbons and natural gas,” it said.
Gail’s standalone net profit in Q1 was rupees 2.56bn ($34mn) compared with rupees 12.88bn in the same quarter of last year. Total turnover during the quarter was rupees 120.6bn, versus rupees 182.76bn in the year ago period, Gail said.
The company’s natural gas transmission volume was 90.22mn m3/day, down from 105.41mn m3/day while marketing volume stood at 81.16 mn m3/day, down 16% yr/yr.
During the quarter, the consolidated group turnover stood at rupees 121.52bn, down from rupees 184.45bn while net profit was rupees 6.54bn, down 56.4% yr/yr.
Gail chairman Manoj Jain said that with gradual relaxation of lockdown and increase in economic activities, the physical performance of the company has picked up significantly in all segments and the company is presently operating at near pre-lockdown levels.