New Delhi: Announcing the financial results on Tuesday, state-run Gas Authority of India Limited’s (GAIL) Chairman and Managing Director (CMD) Sandeep Kumar Gupta said, “Despite challenges in global economy, our company had a landmark year, reaching unprecedented financial milestones and achieving the highest-ever EBITDA, PBT and PAT in GAIL’s history.” GAIL posted a 28.05 percent rise in standalone net profit year-on-year in FY2024-25 at Rs 11,312.32 crore as opposed to Rs 8,836.48 crore in the preceding fiscal year. On consolidated basis, Profit after Tax (PAT) grew 25.84 percent, up from Rs 9,902.81 crore in FY24 to Rs 12,462.87 crore in FY25.
GAIL’s standalone revenue from operations increased 5.08 percent year-on-year in FY2024-25 to settle at Rs 1,37,287.56 crore. Standalone total income, at Rs 1,39,688.81 crore, went up 5.15 percent year-on-year in FY2024-25. GAIL’s standalone EBITDA stood at 7.38 percent and Earnings per Share (EPS) stood at 17.20 percent (up from 13.44 percent in FY24) in FY2024-25.
On consolidated basis, GAIL recorded PAT of Rs 12,462.87 crore for FY2024-25, which was up 25.84 percent in comparison to Rs 9,902.81 crore in FY2023-24. Consolidated revenue from operations rose by 6.59 percent year-on-year in FY25 at Rs 1,42,291.42 crore and total income increased 6.73 percent year-on-year in FY2024-25 at Rs 1,43,559.06 crore.
The net profit for both standalone and consolidated results saw a significant increase as the gas utility received Rs 2,440.03 crore from a settlement agreement with an LNG supplier related to non-supply of LNG cargoes. This amount was recognised as exceptional income and directly boosted profits. There was also a reduction in certain inventory and employee benefit expenses on a year-on-year basis.
For the March quarter of FY2024-25, GAIL posted a standalone net profit of Rs 2,049.03 crore, which was 5.88 percent lower in comparison to the corresponding quarter of the previous financial year. On quarter-on-quarter basis, GAIL’s PAT has tumbled 47.04 percent. On consolidated basis, GAIL recorded PAT of Rs 2,505.61 crore in Q4 FY25, which was 1.26 percent higher in comparison to Q4 of FY24 but was 38.65 percent lower on quarter-on-quarter basis. The sharp drop in both standalone and consolidated PAT in Q4 FY2024-25 is primarily explained by the absence of exceptional income that significantly boosted profits. Even though the consolidated PAT marginally increased, EBITDA fell ~10 percent, reflecting pressure on margins. However, on quarter-on-quarter basis, EBITDA showed recovery as it increased 15.63 percent.
GAIL’s natural gas marketing segment was the largest contributor to its profit as Profit before Interest and Tax (PBIT) for the segment clocked a growth of 22.7 percent between FY24 and FY25. This was primarily due to a higher domestic demand. GAIL said that its gas marketing volume stood at 101.49 MMSCMD in FY25 as against 98.45 MMSCMD in FY24. The PBIT for natural gas transmission improved 21.3 percent between FY24 and FY25 due to higher tariff realisation and volumes. According to the gas utility, natural gas transmission volume registered growth of 6 percent to 127.32 MMSCMD as against 120.46 MMSCMD in FY24. GAIL also benefits from its vast pipeline infrastructure. These two segments remain the core engines driving GAIL’s profitability.
Petrochemicals, on the other hand, continued to register losses, but narrowed the loss in FY25 in comparison to FY24, suggesting stabilisation. LPG and Liquid Hydrocarbons segment recorded a growth of 49.3 percent in PBIT between FY24 and FY25. GAIL’s other segments, which includes City Gas Distribution (CGD) has posted a strong PBIT of 44.3 percent backed by its growing footprint in the sector. The growth in profit recorded by GAIL is broad-based, with all major segments showing strong improvement, except petrochemicals.
The Board of Directors has recommended a final dividend of Re 1 per equity share (face value of Rs 10 per equity share) for the financial year 2024-25, subject to shareholder approval at the upcoming Annual General Meeting (AGM). This is in addition to the interim dividend of Rs 6.50 per equity share.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)