New Delhi (IANS) Gas transmission utility GAIL (India) has reported a big jump in its profitability during the first quarter of current financial year, on the back of overall improvement in operational parameters with higher margins in gas marketing and better physical performance in natural gas marketing and transmission.
The company’s net profit jumped 498 per cent in Q1 FY22 to Rs 1,530 crore from Covid affected profit of mere Rs 256 crore in the same period of previous year.
In the April-June quarter, GAIL recorded turnover of Rs 17,352, a growth of 44 per cent over Rs 12,060 crore turnover reported in Q1 FY21.
The increase in the profits is mainly attributable to better physical performance in natural gas marketing and transmission, improved margins in gas marketing due to favourable market conditions and better price realisation in petrochemicals and liquid hydrocarbons, the company said in a statement.
During the quarter, natural gas transmission and natural gas marketing volume increased by 19 per cent and 18 per cent, respectively as compared with corresponding quarter in previous year. The volume growth was due to normalcy of the business activities as against nationwide lockdown during Q1 FY21.
During the quarter, the consolidated group turnover stood at Rs 17,551 crore as against Rs 12,152 crore in Q1 FY21. The group’s PBT and PAT stood at Rs 2,540 crore and Rs 2,138 crore, respectively, as against Rs 729 crore and Rs 654 crore, respectively, in Q1 FY21.
GAIL Chairman & Managing Director, Manoj Jain stated that the company is focussed on development of the national gas grid and currently GAIL, along with its JVs, is executing pipeline projects of around 8,000 km with investment of around Rs 38,000 crore.
GAIL is also expanding polypropylene production capacity by setting up 500 KTA PDHPP Unit at Usar (Maharashtra) and 60 KTA PP unit at Pata (Uttar Pradesh) with an approximate investment of Rs 10,000 crore. During the current financial year, GAIL has a capex plan of Rs 6,600 crore. Jain further added that GAIL is exploring possibilities for expanding its footprint in renewables.