GAIL’s earnings before interest, tax, depreciation and amortization during the December 2018 quarter was Rs 2,673 crore compared with Rs 1,992 crore a year ago.
Gas utility Gail (India) on Tuesday reported 14.35% sequential decline in net profit during the quarter ended December 2018 despite registering a 33% year-on-year (y-o-y) profit rise, riding on the increasing demand for natural gas in the country.
During the December 2018 quarter, the net profit stood at Rs 1,681.23 crore compared with Rs 1,262.22 crore during the year-ago period. However, during the September quarter this fiscal, net income was at Rs 1,962.96 crore.
The company’s revenue increased 37.29% to Rs 19,788.98 crore during the December 2018 quarter compared with Rs 14,414.34 crore a year ago. The board of the company declared an interim dividend of Rs 6.25 per equity share (face value of Rs 10 each) for FY19 with the outgo amounting to Rs 1,409.42 crore.
GAIL’s earnings before interest, tax, depreciation and amortization during the December 2018 quarter was Rs 2,673 crore compared with Rs 1,992 crore a year ago. However, it was down from Rs 2,928 crore in the September 2018 quarter.
The companies earnings per share increased from Rs 7.46 a share to Rs 5.60 during the two periods. However, EPS was down from Rs 8.70 per share in the September 2018 quarter.“The profit was higher mainly due to better performance by natural gas marketing, natural gas transmission, liquid hydrocarbon (LHC) and LPG transmission segments”, the company said in a statement.
The company’s natural gas sales rose 9% y-o-y during the December 2018 quarter, whereas LPG transmission was 11% higher and sales of liquid hydrocarbons increased 5%. BC Tripathi, GAIL’s chairman and managing director, in the statement said that while margins in natural gas trading and petrochemical segments were under pressure during the quarter, the liquid hydrocarbon segments performed well due to better margins.
GAIL’s petrochemical unit at Pata became the first company in India to produce the value-added Metallocene film grade. “Country-wide sales have commenced to quality conscious customers after successful field trials. This move of Gail would not just provide domestic consumers of a reliable and indigenous supply source but shall help potential forex savings of over $100 million annually for India, as per initial estimates,” he said.