BackGail's Q4 profit plummets 77.5% on weak show in petrochemicals segment
The revenue from operations rose by 21.8 per cent to ₹32,858.20 crore as against ₹26,968.21 crore in the year ago period.
PremiumNew Delhi: Gail (India) Ltd, the largest gas distributor in the country, reported a significant decline of 77.5% in its quarterly profit on Thursday due to weakness in its petrochemicals segment.
Gail reported a net profit of ₹603.52 crore for the quarter ending on 31 March, 2023 (Q4FY23), compared to ₹2,683.11 crore in the corresponding quarter of the previous year. This sharp decline in profit reflects the challenges faced by the company in the recent period.
The company’s revenue from operations stood at ₹32,858 crore in Q4FY23, down from ₹35,380 crore in the previous quarter (Q3FY23). However, there was a notable growth in the profit before tax (PBT), which surged by 165% to ₹591 crore in Q4FY23, compared to ₹223 crore in Q3FY23. Similarly, the profit after tax (PAT) increased by 146% to ₹604 crore in Q4FY23, up from ₹246 crore in Q3FY23.
On a consolidated basis, GAIL’s revenue from operations for the fiscal year 2022-23 (FY23) reached ₹1,45,875 crore, a substantial increase from ₹92,874 crore in the previous fiscal year (FY22). However, the consolidated PBT for FY23 stood at ₹7,256 crore, showing a decline from ₹15,464 crore in FY22. Similarly, the consolidated PAT (excluding non-controlling interest) decreased to ₹5,616 crore in FY23, down from ₹12,256 crore ($1.7 billion) in FY22.
During Q4FY23, GAIL witnessed a rise in natural gas transmission volume, reaching 108.23 million metric standard cubic meters per day (MMSCMD), compared to 103.74 MMSCMD in Q3FY23. The gas marketing volume also increased to 96.46 MMSCMD, up from 89.89 MMSCMD in the previous quarter. However, there was a decline in the sales of liquefied hydrocarbon (LHC), with 230 thousand metric tonnes (TMT) in Q4FY23, compared to 248 TMT, as well as polymer sales, which reached 118 TMT, up from 65 TMT in Q3FY23.
Chairman & managing director of Gail Sandeep Kumar Gupta said the company has incurred its highest-ever capital expenditure (capex) of approximately ₹9,100 crore ($1.2 billion) during FY 2022-23. This significant investment was primarily directed towards pipelines, petrochemicals, and equity to joint ventures, exceeding the annual target of ₹7,918 crore ($1.1 billion) by 15%.
Gupta also highlighted the successful implementation of the Unified Tariff, effective from April 1, 2023, which aims to achieve the One Nation One Grid One tariff model and boost gas consumption in remote areas.
On Thursday, the stock was down by 3.68 per cent to ₹105.95 on BSE.
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