Quarterly net profit at GAIL dips 30%

29-Oct-09

Falling margins on petrochemicals and liquid hydrocarbons along with a subsidy burden have impacted net profits at GAIL that has dropped by 30% in the July-September quarter. Lower production and lower price realisation of polymers and liquid hydrocarbons pulled net profit down. Net profit fell to Rs 713 crore from Rs 1,023 crore a year ago despite income that rose to Rs 6,371 crore in the same period from Rs 6,358 crore in the previous corresponding period. Revenue from petrochemicals business stood at Rs 616 crore against Rs 627 crore, while from LPG and liquid hydrocarbons, the amount was Rs 515 crore in the period under review from Rs 1,065 crore in the corresponding period last year. GAIL also contributed Rs 459 crore towards LPG and kerosene subsidy in the second quarter compared to Rs 401 crore during the corresponding previous year quarter. For the half-year ended September 30, the company posted a net profit of Rs 1,369.07 crore, a near-29% dip over the year-ago period. Income from operations at the end of six month period stood at Rs 12,223.60 crore, while it was at Rs 11,859.99 crore in the same period last fiscal. GAIL plans to raise Rs 500 crore through bonds in December to fund capital expenditure, as the company board clears the proposal for bonds issue with a 50% greenshoe option that will allow GAIL to raise another Rs 250 crore. The pipeline to feed gas to the Bawana power plant, a Commonwealth Games project, will be ready by November 15 and the link for fuelling Pragati Maidan plant too would be ready in time.