India’s largest natural gas company GAIL declared results for the quarter ended March 2024 (Q4FY24). The company posted a 260 percent jump in its March quarter standalone net profit at ₹2,177 crore as against ₹603.5 crore in the same period last year. However, on a sequential basis, the firm’s net profit fell 23 percent from ₹2,842.62 crore.
Meanwhile, the company’s total income declined marginally 2.6 percent to ₹32,317 versus ₹33,875.39 in the year-ago period. Sequentially as well, its total income fell 5.6 percent from ₹34,237 crore.
On the operating front, GAIL’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the fourth quarter also decreased by 7 percent QoQ to ₹3,559 crore as against ₹3,822 crore in the previous quarter.
Its operating profit margin (OPM) for the quarter under review came in at 11 percent, marginally lower than the 11.2 percent in the previous quarter.
The year-on-year rise in profit was aided by a turnaround in natural gas transmission and petrochemicals business and an uptick in gas marketing.
The company’s gas transmission business significantly turned around with a pre-tax profit of nearly ₹980 crore as against a loss of ₹16.41 crore in the January-March 2023 period. Additionally, the petrochemical business also saw a noteworthy improvement, achieving a pre-tax profit of ₹262.34 crore compared to a loss of ₹401 crore in the previous year. Notably, earnings from natural gas marketing surged to ₹1,390 crore in January-March 2024 from ₹487.40 crore a year earlier.
For the full financial year FY24, GAIL’s net profit soared 66.6 percent to ₹8,836.48 crore as against ₹5,301.51 crore in FY23. However, its total income for FY24 declined 9.6 percent to ₹1,32,846 crore versus ₹1,46,986.31 crore in FY23.
GAIL also announced that its board approved an investment of ₹1,792 crore for laying a pipeline from Vijaipur in Madhya Pradesh to Pata in Uttar Pradesh to transport feedstock for its petrochemical plant.
The proposed pipeline, which will have a capacity to move 0.95 million tonnes per annum of liquid products, will be completed in 32 months, it added.
On BSE, shares of GAIL ended 2.6 percent lower at ₹195.55.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 16 May 2024, 03:41 PM IST
