Gas Authority of India Ltd (GAIL) India has reported 12.7% drop in its net profit at Rs 630.02 crore for the quarter ended March 31, 2009, as against Rs 722.38 crore, owing to lower price realisation and exploration & production cost. Sales for the period, however, rose 24% to Rs 6,104.31 crore in the January-March quarter in 2009 from Rs 4,935.29 crore earlier.

For FY09, the company?s net profit increased 8%t to Rs 2,803.7 crore from Rs 2,601.46 crore in the previous year. Sales surged 32% at Rs 23,775,95 crore from Rs 18,008.20 crore.

UD Choubey, CMD at GAIL, said, ?This is despite increase in GAIL?s outgo on LPG subsidies to Rs 1,781 crore as against Rs 1,314 crore in the previous year.? However, gross margin increased 8% to Rs 4,851 crore from Rs 4,506 crore.

The board of directors has recommended payment of total dividend at the rate of 705 on the enhanced paid-up share capital for FY 2008-09.

In a statement on the Bombay Stock Exchange, GAIL said that its turnover in the last 10 years has shown a compounded annual growth of 15%. Market capitalisation of the company, as on March 31, 2009, was around Rs 31,000 crore as against Rs 36,000 crore a year ago. The company said the subsidy sharing in domestic LPG and PDS kerosene was for Rs 1,781 crore in 2008-09. Without the subsidy element, the profit before tax would have been 16%.

Gail shares fell 1.52% on the BSE on Monday to close at Rs 282.65 compared with the previous close of Rs 287. The shares touched an intraday high of Rs 288 on the BSE.

Choubey also said Gail plans to invest Rs 5,558 crore during FY09-10. Of these, Rs 4,020 crore will be invested in pipeline projects, Rs 650 crore in E&P projects, Rs 285 crore in petrochemicalsn Rs 130 crore in business development, Rs 250 crore for equity investment in city gas projects, Rs 200 crore in Dabhol power plant and rest in telecom.

GAIL transmitted 83.29 million standard cubic metres per day of gas while it sold 79.06 mmscmd. GAIL produced 420,000 tonne polymers and 1.4 million tonne of LPG and other liquid hydrocarbons.

?Without the subsidy element, the profit before tax would have increased by 16% to Rs 5,985 crore and profit after tax would have increased 14% to Rs 3,991 crore,? he said. During the 2008-09 fiscal, revenue from natural gas trading increased 45% to Rs 18,308 crore from Rs 12,648 crore, primarily due to increased volumes and higher gas sales price.