GAIL profit up 28% on higher margins
New Delhi: GAIL India Ltd on Monday reported 28% rise in the December quarter net profit on better margins from gas marketing and transportation business.
The net profit in the October-December quarter of the current fiscal was Rs1,262.22 crore, higher than Rs982.92 crore in the same period of last fiscal. The company said in a statement here that its board also approved the issuance of one bonus share for existing three equity shares.
It said the profit was higher “mainly due to the better performance by liquid hydrocarbon, gas marketing and transmission segments”. The company’s revenue was up 17% at Rs14,717 crore, gross margin was up 14% at Rs2,273 crore.
GAIL transported and marketed 6% more volumes in the quarter, while petrochemical sales were up 21%. Sales of liquid hydrocarbon gas (LPG) were up 10% and the firm transported 2% more cooking gas in the quarter compared to the year-ago period.
B.C Tripathi, chairman and managing director, GAIL, said: “All the segments have registered physical growth as compared to previous year, which is reflected in both the top line and the bottom line of the company.”
Alongside, the company is also increasing its natural gas pipeline infrastructure, the statement quoted him as saying without giving details. “We are confident to meet the capex target of current fiscal year which is more than 70 per cent achieved last year. Similar growth in capex is planned in the next fiscal 2018-19 to around Rs 6,000 crore,” he said.