BackGAIL Q3 profit slumps 92.5% YoY to ₹246 cr on supply hit; revenue dips sequentially
Although, revenue was better compared to Q3 of the previous fiscal, however, down sequentially. GAIL posted a standalone net profit of ₹2245.73 crore in Q3FY23.
PremiumGovernment-owned GAIL (India) recorded a decline in profitability during December 2022 quarter on both a year-on-year and quarter-on-quarter basis due to supply hit. Although, revenue was better compared to Q3 of the previous fiscal, however, down sequentially. GAIL posted a standalone net profit of ₹2245.73 crore in Q3FY23.
On a standalone basis, the company's Q3 PAT dipped by 92.52% from ₹3,287.99 crore in the same quarter a year ago. While PAT dropped by 84.01% from ₹1,537.07 crore in the September 2022 quarter.
Standalone revenue from operations stood at ₹35,380.38 crore -- significantly higher by 37.26% from ₹25,775.58 crore in December 2021 quarter. However, revenue declined by 8.08% from ₹38,490.89 crore in the preceding quarter.
In Q3FY23, the company's natural gas transmission volume stood at 103.74 MMSCMD compared to 107.71 MMSCMD in Q2 FY23. Gas marketing volume stood at 89.89 MMSCMD as against 92.54 MMSCMD in the previous quarter. LHC sales stood at 248 TMT as against 231 TMT & Polymer sales stood at 65 TMT as against 108 TMT in comparison to the previous quarter.
Sandeep Kumar Gupta, Chairman & Managing Director, GAIL said, the company's revenue from operations has crossed ₹1 lakh crore during the nine months ended 31st December 2022, which is the highest ever in any financial year.
Gupta further added that during the quarter, GAIL acquired a 26% Equity stake in "GAIL Bhuwan" Ship, LNG Japonica. Diversifying the company's business with an entry into Speciality Chemical segment, GAIL Board has approved 50 KTA ISOPROPANOL Units (IPA) at Usar where PDHPP Plant is already under construction.
On a consolidated basis, GAIL's net profit dipped to ₹414 crore from ₹1,315 crore in the preceding quarter. Revenue also plunged to ₹35,940 crore in Q3 FY23 as against ₹38,729 crore in Q2 FY23.
For nine months period of FY23, GAIL touched a new milestone by recording the highest-ever revenue from operations of ₹1, 11,443 crore versus ₹64,678 crore in 9MFY22. PAT, however, is lower at ₹4,698 crore as compared to ₹7,681 crore in the same period of the last fiscal.
GAIL has raised a sum of ₹1,575 crore by issuing redeemable non-convertible debentures at a highly competitive rate and incurred Capex of approximately ₹6,278 crore during the nine months mainly on pipelines, petrochemicals, operational capex, etc. which are 79% of the annual target, as per Gupta.
Post Q3 results, Avishek Datta – Research Analyst, Prabhudas Lilladher said,"GAIL reported Q3 results with EBITDA/PAT of ₹2.6 billion (-85%Q/Q; PLe ₹14.8 billion) and ₹2.5 billion (-84%Q/Q; PLe ₹9.7 billion) respectively."
Also, Datta added, "Result was weak and sharply lower across segments- transmission EBIT at Rs4.3 billion (Q2: Rs7 billion), trading –Rs860 million (Q2: + ₹3.6 billion), LPG –Rs291 million (Q2: +Rs5 billion)."
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