GAIL (India) Limited registered a 50% increase in Profit after Tax (PAT) in the second quarter of Financial Year 2018-19, as against the corresponding quarter in last fiscal mainly due to better performance by Natural Gas Marketing, Liquid Hydrocarbon (LHC) and Petrochemicals Segments. The Company’s PAT for the quarter ending 30th September, 2018 rose to Rs. 1,963 crore from Rs. 1,310 crore in the corresponding quarter of the last fiscal. GAIL’s Profit before Tax (PBT) for the second quarter increased by 50% to Rs. 2,897 crore against Rs. 1,927 crore in the corresponding quarter of the last fiscal.
The increase in net profit in Q2 FY 2018-19, on year on year basis, was supported by increase in Natural Gas Marketing volumes by 14%, LPG Transmission by 11%, Petrochemicals Sales by 4% & Liquid Hydrocarbon Sales by 1%.
The current quarter includes effect of upward tariff revision of Rs 194 crore approved by PNGRB w.e.f. 01.04.2018 for Dahej – Uran – Dabhol – Panvel Pipeline, Dukli Maharajganj, Agartala Regional Network and Gujarat Regional Network and a one-time take or pay settlement of Rs 133 crore with one of the Natural Gas Customer. A one-time charge has been made in the current quarter for Rs.208 crore towards increase in gratuity ceiling from Rs 10 lacs to Rs 20 lacs per employee.
GAIL’s PAT in the second quarter of FY 2018-19 rose by 56% vis-à-vis the first quarter of current financial year, from Rs. 1,259 crore to Rs. 1,963 crore largely on account of better realizations in Natural Gas Marketing, Natural Gas Transmission and LHC segment. The better performance of Natural Gas Transmission segment is supported by upward revision of transmission tariff by PNGRB of some of the pipeline network.
Shri B. C. Tripathi, Chairman & Managing Director, GAIL said that in the second quarter, the Gas Marketing and LHC Segments performed better than the last quarter due to better margin in the segments. The Petrochemical segment has shown marked improvement in terms of physical volume growth though margin was under pressure due to increase in input cost primarily due to increase in crude price and adverse exchange rate.
He added that GAIL Gas Ltd, 100% subsidiary of GAIL and its JV’s have participated in 9th round of CGD bidding and won in 14 Geographical Areas (GAs).
During the quarter, Company received favourable judgement from Hon’ble Gujarat High Court in respect of long pending Central Sales Tax Demand of Rs. 4,962 crore on Natural Gas stock-transferred from Gujarat to other States.
On half yearly basis, GAIL’s PAT is Rs. 3,222 crore, signifying an increase by 38% against H1 2017-18.