GAIL Q3 Results: Net Profit Soars 10-Fold To Rs 2,842.62 Crore

The public entity attributed the growth in the business to strong performance across all segments from gas transportation to marketing and petrochemicals

State-owned gas utility company, GAIL India Ltd, reported a 10-fold climb in the net profit in its third quarter financial results released on Monday. The public entity attributed the growth in the business to strong performance across all segments from gas transportation to marketing and petrochemicals.

The standalone profit of the company stood at Rs 2,842.62 crore in the October to December quarter in the ongoing 2023-24 fiscal year, against Rs 245.73 crore logged in the corresponding period a year earlier, the firm said in a statement. The net profit also stood higher against Rs 2,404.89 crore seen in the preceding quarter, reported PTI. 

This profit came after the pre-tax earnings from the gas transportation business soared nearly three-fold to touch Rs 1,215.07 crore. The natural gas marketing segment also posted a pre-tax earning of Rs 1,880.42 crore in the reviewing period, against a loss of Rs 86.02 crore in the third quarter of the previous fiscal year. The petrochemical business logged a small pre-tax profit of Rs 62 crore, against a loss of Rs 349 crore, on a year-on-year (YoY) basis. 

The revenue from operations stood almost flat at Rs 34,253.52 crore. For the first nine months of FY24, the net profit climbed 42 per cent to touch Rs 6,659.51 crore with a revenue of Rs 98,303.61 crore. The firm noted that profits remained on the higher end mainly due to a surge in the gas trading margin, a hike in transmission volume, and an increase in transmission tariff. 

Commenting on the results, Sandeep Kumar Gupta, Chairman and MD, GAIL, stated, “During the quarter, the physical performance has improved across all major business verticals and the petrochemical segment has turned profitable owing to plant efficiency, better capacity utilisation and other optimisation measures adopted.”

Gupta noted that the company incurred a capex of Rs 6,583 crore during the April-December 2023 period, majorly on pipelines, petrochemicals, and equity contributions to joint ventures. The firm also announced an interim dividend of 55 per cent for the current fiscal year of Rs 5.50 per equity share.