During Q3 FY11, GAIL reported an operating profit of Rs 13.3 bln up 3.5% yoy, while OPM fell by 485 bps yoy to 15.9%. Lower profitability was on account of slump in EBIT margins for petrochemical and natural gas transmission segments. The petrochemicals business was hit on account of a 23-day plant shutdown, which impacted sales volumes. Apart from falling petrochemical spreads, lower production resulted in 886 bps yoy slump in EBIT margins for the petchem segment. EBIT margins for natural gas transmission segment were lower by 331 bps yoy. The impact of these two segments was offset by 10 ppts increase in EBIT margins for LPG transmission segment and 298 bps yoy rise in LPG and liquid hydrocarbon segment (lower subsidy incidence). Dry well expenditure was also higher by 50% yoy at Rs321 mln. As compared to operating profit growth of 3.5% yoy, PAT grew by 12.5%. This was on the back of 51.4% yoy jump in other income 350 bps lower effective tax rate.
Polymer sales volume dipped by 33% since a year ago to 81,000 tons. Net petrochemical sales by value fell by 30% to Rs 5.71 bln.
19-Jan-11 
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