GAIL Q2 results: Net profit rises 131% as gas marketing revenue returns

GAIL (India) Ltd, the biggest natural gas distributor in the country, saw its net profit more than double during the quarter ended September 30, 2021 as gas marketing once again began to rake in money for the company. The Petroleum Ministry PSU reported a net profit after tax of ₹2,862.95 crore during the second quarter of the current fiscal. The company had reported a net profit of ₹1,239.67 crore in the year-ago period.

Revenue from operations increased 57.65 per cent to ₹21,515.30 crore during the quarter under review, from ₹13,647.06 crore in the corresponding quarter of the last fiscal.

The massive jump in GAIL's Q2 profit was a result of natural gas marketing returning to black. The segment posted a pre-tax profit of ₹1,078.92 crore in Q2 as compared to a loss of ₹363.98 crore a year back.

Natural gas transmission earnings were almost flat at ₹1,040.03 crore, while pre-tax profit from the petrochemical business more than doubled to ₹363.29 crore.

A company statement mentioned that the September quarter of FY22 saw the highest ever half-yearly turnover and profit for GAIL. Turnover in H1 came in at ₹38,829 crore as against ₹25,671 crore in the last fiscal, an increase of 51 per cent. Net profit rose 194 per cent to ₹4,393 crore for the half-year in September this year as against ₹1,495 crore in H1 FY21.

GAIL stated that physical performance improved across all segments during the quarter under review.

Natural gas transmission increased to 114.32 million standard cubic meters per day in Q2 FY22 as against 107.66 mmscmd in Q1FY22, up by 6 per cent. The sale of natural gas rose to 97.72 mmscmd during the quarter as against 95.95 mmscmd in Q1 FY22, up by 2 per cent. Petrochemical production sales rose 60 per cent to 2,21,000 tonnes in the quarter.

GAIL Chairman and Managing Director Manoj Jain said during the H1 FY22, the natural gas utility has incurred a capex of ₹3,180 crore mainly on pipelines and petrochemicals. The company has a capex plan of ₹6,600 crore in FY22. Jain added that sustainable performance is expected in the future.

GAIL (India) shares closed Friday's trade at ₹148.95, rising 1.95 points or 1.12 per cent on BSE.