GAIL India Ltd Q3 net profit doubles to Rs3,781crore on strong EBIT growth in natural gas marketing

4 Feb 2022 , 01:43 PM

GAIL India Ltd reported 66.99% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs26,176 crore. On a sequential basis, the revenues were up by 20.14%.

During the December 2021 quarter, GAIL reported almost flat revenues from gas transmission services at Rs1,673 crore while the revenues from LPG transmission were marginally lower.

There was a sharp jump in revenues from natural gas marketing which surged by 68.8% you at Rs 25,118 crore supported by buoyant natural gas prices in the quarter in line with global trends.

Its revenues from the city gas business also doubled yoy. Its debtors turnover and inventory turnover improved yoy.

For the Dec-21 quarter, the operating profits were up on a yoy basis by 139.47% at Rs 4,019 crore. During the quarter, the company witnessed improvement in the debt service coverage ratio as well as the interest service coverage ratio.

In terms of EBIT growth of verticals, the big boost came from natural gas marketing where EBIT turned around from Rs-158 crore to a positive EBIT of Rs1,966 crore. The other big contributor to EBIT growth was the LPG and liquid hydrocarbons business where EBIT tripled to Rs855 crore.

Operating margins improved sharply from 10.71% in Dec-20 quarter to 15.35% in the Dec-21 quarter. Operating margins were higher on a sequential basis by 150 bps.

Net Profit after tax (PAT) for the Dec-21 quarter was up 100.72% yoy at Rs3,781 crore on the back of the robust operating performance getting transmitted to the bottom line. Much of the profit growth in the quarter came from a sharp spike in prices of natural gas on a yoy basis.

PAT margins improved from 12.02% in the Dec-20 quarter to 14.44% in the Dec-21 quarter. The PAT margins were higher on a sequential basis by 121 bps.

Financial highlights for Dec-21 compared yoy and sequentially

	GAIL India Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 26,176	₹ 15,675	66.99%	₹ 21,788	20.14%
EBITDA (Rs cr)	₹ 4,019	₹ 1,678	139.47%	₹ 3,018	33.18%
Net Profit (Rs cr)	₹ 3,781	₹ 1,884	100.72%	₹ 2,883	31.13%
Diluted EPS (Rs)	₹ 8.51	₹ 4.18		₹ 6.49
EBITDA Margin	15.35%	10.71%		13.85%
Net Margins	14.44%	12.02%		13.23%