Q3 FY’22: GAIL posts 158% increase in net profit, shares rise

New Delhi: Maharatna petroleum PSU, GAIL (India) Limited has surpassed all parameters of financial performance in the third quarter of the financial year 2021-22 on account of improved gas marketing spread, better product prices and improved operating efficiency in petrochemicals and liquid hydrocarbons.

GAIL posted 20 percent increase in revenue from operations to Rs 25,776 crore in Q3 FY22 as against Rs 21,515 crore in Q2 FY22. The profit before tax (PBT) increased by 17 percent in Q3 FY22 to Rs 4,308 crore as against Rs 3,682 crore in Q2 FY22. The profit after tax (PAT) increased by 15 percent to Rs 3,288 crore in Q3 FY22 as against Rs 2,863 crore in Q2 FY22.

Revenue from operations for nine-month period ended on December 31, 2021 increased by 57 percent to Rs 64,678 crore as compared to Rs 41,189 crore in the corresponding period of previous year.  PBT registered a growth of 166 percent and stood at Rs 10,044 crore up-to Q3 FY22 as against Rs 3,774 crore upto Q3 FY21.  PAT increased by 158 percent to Rs 7,681 crore up-to Q3 FY22 as against Rs 2,983 crore upto Q3 FY21 mainly on account of improved gas marketing spread, better product prices, better physical performance in gas marketing and transmission segment.

On a consolidated basis, the revenue from operations increased by 20 percent in Q3 FY22 to Rs 26,176 crore vs. Rs 21,782 crore in Q2 FY22. The PBT in Q3 FY22 was up by 29 percent to Rs 4,820 crore vs. Rs 3,728 crore in Q2 FY22 and the PAT in Q3 FY22 increased by 31 percent to Rs 3,781 crore vs. Rs. 2,883 crore in Q2 FY22.

On a nine-month basis, GAIL achieved consolidated revenue from operations, PBT & PAT of Rs. 65,546 crore, Rs. 11,088 crore & Rs. 8,802 crore respectively for the period up to Q3 FY22, up by 57 percent, 146 percent and 141 percent respectively against the corresponding period of the previous year.

GAIL's Chairman & Managing Director (CMD) Manoj Jain informed that this is the highest ever quarterly revenue from operations, PBT and PAT of the company. In fact, during the nine-month period ended on December 31, 2021, GAIL has already surpassed the highest ever PAT achieved in any of the previous financial years. GAIL has incurred a capex of Rs 5,034 crore mainly on pipelines, petrochemicals, equity to JVs, etc.

He further stated that GAIL has acquired 26 percent stake from ILF&S in ONGC Tripura Power Company. The acquisition would be synergetic and enable GAIL to stronghold its presence in the North East region of the country. He further added that GAIL has commissioned India's first-of-its-kind pilot project for mixing hydrogen into city gas distribution network of AGL at Indore, Madhya Pradesh, this project marks the stepping stone of India's journey towards a hydrogen-based and carbon-neutral future.

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