Gail Q4 profit dips 69% at Rs260 crore, declares dividend of Rs2.7 per share
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Mumbai: State-run Gail (India) Ltd said its net profit fell 69% in the fiscal fourth quarter on account of an impairment charge on an investment.
Net profit fell to Rs260 crore in the quarter to March from Rs832 crore a year ago, the firm said in a statement to BSE on Monday.
Gail took an impairment charge of Rs788 crore on an investment in the quarter, according to the note.
Gail said it has an investment amounting to Rs974.31 crore in Ratnagiri Gas and Power Pvt. Ltd (RGPPL), a joint venture with NTPC, which has initiated the process of demerger of its business into two separate companies.
“In compliance of Ind AS 36, on impairment of assets, Gail and NTPC carried out an assessment of impairment of investment in RGPPL as on 31 March considering the restructuring of the business. Accordingly, a provision of Rs783 crore has been made,” the company said.
Net income rose 16% to Rs13,674 crore from Rs11,802.40 crore in the fourth quarter of last fiscal, as revenue from petrochemicals rose by 57% to Rs1,766 crore and natural gas marketing by 12.7% to Rs10,370.56 crore.
Twenty-seven analysts polled by Bloomberg estimated a net profit at Rs1,117.6 crore; a poll of 26 analysts estimated sales to come in at Rs13,226.7 crore. Earnings before income, tax, depreciation and amortization (ebitda) or operating profit for the quarter rose 27% to Rs1,525 crore. Ebitda margin for the quarter stood at 11.4%.
Shares of Gail fell 2.48% to Rs391.15 on BSE, while the Sensex gained 0.35% to 30,570.97 points.
The company declared a dividend of Rs2.7 per share.