GAIL reports net profit of Rs 1,793 crore in June quarter; stock zooms ~2%

1 Aug 2023 , 11:34 AM

GAIL (India) announced its results for the quarter ended June 2023 and reported a 45% y-o-y decline in its consolidated net profit at Rs 1,793 crore as against Rs 3,251 crore in the previous corresponding quarter.

On a sequential basis, net profit climbed 179% from Rs 643 crore in the quarter ended March 2023, owing primarily to increased gas marketing and transmission volumes and transmission rate realization.

Following two sluggish quarters, the company’s performance improved in the current quarter as liquefied natural gas (LNG) prices have softened and gas supplies resumed.

Last year, GAIL had to limit shipments to its clients due to supply difficulties from Russia’s Gazprom, forcing it to purchase expensive LNG from the short-term market.

In the fiscal quarter ended June 30, revenue from operations remained flat at Rs 32,849 crore, compared to Rs 37,942 crore the previous year.

EBIT from the natural gas transmission business climbed to Rs 1,025 crore in the period under review. Natural gas marketing EBIT was down nearly 50% year-on-year in the third quarter, coming in at Rs 1,046 crore.

At around 11.32 AM, GAIL India was trading 1.72% higher at Rs 121.15, against the previous close of Rs 119.10 on NSE. The counter touched an intraday high of Rs 122.35.

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