In the second quarter of the financial year of 2022, GAIL India Ltd.’s profit soared as its natural gas marketing returned to black.
Sequentially, net profit jumped by 87% to INR2,863 crore (USD384,87 million), significantly higher than expected by analysts. The result was comparable with INR1,239.6 crore (USD166.6 million) in the same period a year ago.
In the quarter ended September, GAIL’s natural gas transmission grew by 10% annually but the result was almost flat at INR1,040 crore (USD139.8 million). The company’s natural gas marketing sales volumes expanded by 25.1% quarter-to-quarter to a pre-tax profit of INR1,078.9 crore (USD145 million) compared to the loss of INR364 crore (USD48.9 million) a year ago.
Liquefied petroleum gas (LPG) edged up by 9.5%.
Revenue from operations expanded by 57.65% to INR21,515 crore (USD2.9 billion) compared to INR13,647 crore (USD1.8 billion) in the corresponding time of the past fiscal year.
Sequentially, natural gas transmission rose by 6% to 114.32 million m3/day while the sale of natural gas expanded by 2% to 97.72 million m3/day. The sales of petrochemical products surged by 60% to 221,000 tonnes.
In the first half of the fiscal year, the turnover came in at INR38,829 crore (USD5.2 billion) against INR25,671 crore (USD3.45 billion) in the last fiscal. Net profit skyrocketed by 194% to INR4,393 core (USD590.55 million) against INR1,495 crore (USD200.9 million) in the same period a year ago.
The company’s natural gas utility has incurred a capital expenditure (CAPEX) of INR3,180 crore (USD427.5 million) mostly on pipelines and petrochemicals.
For the whole fiscal year, GAIL has a CAPEX plan of INR6,600 crore (USD887.2 million).
