New Delhi: State-run GAIL (Gas Authority of India Limited) has recorded a 25 percent drop year-on-year in net profit for Q3 of financial year 2019-20 at Rs 1,250 crore. GAIL’s PAT stood at Rs 1,681.23 crore in the December quarter of FY2018-19. However, if one is to look quarter-on-quarter, GAIL has improved its PAT by 17 percent. In the September quarter of FY2019-20, GAIL’s net profit was at Rs 1,064.25 crore.
13% rise in consolidated profit of GAIL in Q3
The PSU has posted a 13 percent rise in consolidated net profit in Q3 of FY2019-20 at Rs 2,030 crore on the back of improved margins and reduced expenses. GAIL had posted a consolidated net profit of Rs 1,797 crore in the corresponding quarter of financial year 2018-19. “The rise in profit is mainly due to better physical performance, better margins in Gas Marketing and Liquid Hydrocarbons,” the company said in a statement.
GAIL’s revenue from operations decline 12%
GAIL’s revenue from operations have declined 12 percent to Rs 17,898 crore in Q3 of FY2019-20. Its expenses during the quarter declined 8.71 percent to settle at Rs 16,292 crore, as compared to the corresponding quarter a year ago. In the nine-month period ended December 2019, gross sales of Rs 54,021 crore was recorded as against Rs 56,101 crore in the corresponding period of the last year. PBT stood at Rs 5,388 crore against Rs 7,345 crore and PAT at Rs 3,602 crore against Rs 4,903 crore. PBT and PAT witnessed fall of 27 percent mainly due to reduction in Petrochemical and LHC prices by around 22 percent and 17 percent, respectively. On a consolidated basis, gross sales stood at Rs 54,525 crore upto Q3 FY20 as against Rs 56,892 crore upto Q3 FY19. PAT was Rs 4,701 crore upto Q3 FY20 as compared to Rs 5,029 crore upto Q3 FY19.
‘GAIL gearing up for gas economy’
Dr Ashutosh Karnatak, Chairman & Managing Director of GAIL, said that the company had been able to achieve growth in profit in Q3 FY20 despite significant decline in Petrochemicals prices. This has been due to better operational efficiency and physical performance in comparison to Q2 FY20 accompanied with an increased capacity utilisation of the petrochemical unit at Pata, over 100 percent. He also stated that GAIL is keeping up with the government’s vision of expanding the share of natural gas to 15 percent in the energy basket of India by working relentlessly in reshaping the gas economy of the country.