New Delhi: GAIL (India) Limited's standalone net profit has zoomed 500 percent in Q1 of FY 2021-22 year-on-year at Rs 1,529.92 crore, up from Rs 255.51 crore recorded in the corresponding quarter of the previous fiscal. However, in comparison to the previous quarter (Q4 of FY 2020-21), the net profit has dipped by nearly 20 percent, showing that business got affected due to the second wave of the COVID-19 pandemic. The consolidated net profit for the June quarter, on the other hand, grew 235.49 percent year-on-year to Rs 2,157.15 crore, up from Rs 642.97 crore in the corresponding quarter of the previous fiscal. When compared to the March quarter of FY 2020-21 (Rs 2,534.64 crore), the net profit fell by around 15 percent.
"The increase in the profits is mainly attributable to better physical performance in Natural Gas Marketing & Transmission, improved margins in gas marketing due to favourable market conditions and better price realisation in Petrochemicals and Liquid Hydrocarbons," said an official statement released by GAIL on Thursday.
The standalone total income for Q1 of FY 2021-22 was Rs 17,584.21 crore, up from Rs 16,117.48 crore recorded in the March quarter of the previous financial year and Rs 12,328.80 crore in the corresponding quarter of the previous fiscal. During the quarter, the consolidated group turnover stood at Rs 17,551 crore as against Rs 12,152 crore in Q1 FY2020-21.
During the quarter, Natural Gas Transmission and Natural Gas Marketing volume increased by 19 percent and 18 percent, respectively, as compared with the corresponding quarter in previous year. The volume growth is due to normalcy of the business activities as against nationwide lockdown during Q1 FY21.
While the revenue from transmission fell by a small 3.08 percent in Q1 of FY 2021-22 year-on-year, revenue from the marketing segment rose by 19.15 percent year-on-year.
Manoj Jain, Chairman & Managing Director, GAIL, said that the company is focussed on development of the National Gas Grid and currently GAIL, along with its JVs, is executing pipeline projects of around 8,000 km entailing an investment of around Rs 38,000 crore.
GAIL is also expanding Polypropylene production capacity by setting up 500 KTA PDHPP Unit at Usar (Maharashtra) and 60 KTA PP unit at Pata (Uttar Pradesh) with an approximate investment of Rs 10,000 crore. During current financial year, GAIL has capex plan of Rs. 6,600 crore. Jain further added that GAIL is exploring possibilities for expanding its footprint in renewables.
(PSU Watch– India's Business News center 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.)