GAIL Q2 net profit falls by 42%

31-Oct-06

GAIL has reported a 42.11% drop in net profit at Rs 448 crore in the quarter ended September 30. This drop in profits can largely be attributed to increased share of subsidy and lower availability of gas at Hazira owing to floods in Gujarat. Net profit stood at Rs 774 crore during the same period last year. Floods in Gujarat resulted in lower availability of gas at Hazira from August 8 to September 9, resulting into loss of production of petrochemical, LPG and liquid hydrocarbon products and loss of transmission charges in the HVJ pipeline system. The decrease in the net profit was also due to increased share of subsidy in the first half of the current financial year that has more than doubled to Rs 671 crore as against Rs 320 crore in the corresponding period of the previous year.