GAIL (India) on Wednesday reported a 244% increase in its net profit during April-June FY17. The government-owned firm reported profit after tax of Rs 1,335 crore in the first quarter of FY17 against Rs 388 crore in the same quarter previous year. The increase in profit is due to higher margins from petrochemical business and partial sale of stake in Mahanagar Gas Limited.
The higher net profit is registered despite GAIL’s total income during April-June FY17 dropped to Rs 11,457.2 crore against Rs 12,727.97 crore in the same quarter last year.
GAIL said that profit after tax excluding gain from stake sale in Mahanagar Gas is Rs 846 crore, signifying an increase by 118%. The gas marketing and trading company profit before tax for the first quarter FY17 increased by 180% to Rs 1,686 crores against Rs 602 crore in the corresponding quarter of the last fiscal.
During the first quarter of FY17, GAIL’s petrochemical business has seen a turnaround with production and sales jumping 149% and 121%, respectively as compared to corresponding period of the previous year. This resulted in revenue increase in this segment by 95% to Rs 1,133 crore and the profit stood at Rs 9 crore in this quarter as against loss of Rs 397 crore in the corresponding period of the previous year, it said in a statement.
The increase in net profit during Q1 of FY17 was also supported by increase in natural gas sales and transmission volumes which increased by 15% and 10% respectively, the company said.