State-run gas transporter GAIL’s net profit surged 183.9% year-on-year (y-o-y) to Rs 2,995.3 crore on a consolidated basis in the quarter ended June 30, as the natural gas marketing business — GAIL’s largest revenue earner — swung to a profit (before interest and tax) of Rs 449.8 crore. The firm had incurred a loss of Rs 614.1 crore in the corresponding period a year ago.
The company’s profit would have been higher if its tax expenses had not increased 346.5% annually to Rs 383.1 crore in Q1FY22. Revenue in the quarter went up 43.5% y-o-y to Rs 17,702.4 crore, while expenses grew at 29.3% to Rs 15,591.6 crore. The petrochemical segment, owing to higher margins, swung to a before-tax profit of Rs 138.3 crore in the fiscal from the Rs 154.4-crore loss a year ago.
Owing to higher business activities as against nationwide lockdown during Q1FY21, GAIL’s natural gas transmission and natural gas marketing volume increased by 19% and 18%, respectively during the quarter, as compared with corresponding period in previous year.
Manoj Jain, CMD of GAIL, said that “the company is focused on development of national gas grid and currently GAIL, along with its JVs, is executing pipeline projects of around 8,000 km with an investment of around Rs 38,000 crore”. During the ongoing fiscal, GAIL’s capex is expected to be around Rs 6,600 crore.
GAIL is also expanding its polypropylene production capacity by setting up 500 thousand tonne per annum unit at Usar in Maharashtra and 60,000 tonne per annum unit at Pata in Uttar Pradesh with an approximate investment of Rs 10,000 crore. It is also exploring possibilities for expanding its footprint in renewables. “We are looking for multiple areas of renewable energy, but our immediate target is around 400 mega-watt (MW) of solar plants,” Jain had said earlier.