GAIL (India) Ltd Reports Impressive 56% Jump in Q2 Net Profit

GAIL (India) Ltd, the state-owned gas utility, has announced a substantial 56% increase in its net profit for the September quarter. This surge in profitability was primarily driven by robust earnings from the gas transmission and marketing segments, which compensated for losses in the petrochemical division.

Financial Performance Highlights

The standalone net profit for July-September stood at Rs 2,404.89 crore, translating to Rs 3.66 per share. This figure represents a notable 54.4% rise compared to the net profit of Rs 1,537.07 crore, or Rs 2.34 per share, recorded in the same period last year.

Segment-wise Breakdown

GAIL witnessed a remarkable 82% increase in pre-tax earnings from its core gas transportation business, reaching Rs 1,290.65 crore in the second quarter of the fiscal year. Additionally, pre-tax earnings from the marketing of natural gas experienced an exceptional nearly 400% surge, amounting to Rs 1,784.58 crore.

In contrast, losses in the petrochemical business showed a significant improvement, narrowing down to Rs 160.61 crore from Rs 346.22 crore in the July-September period of 2022.

Revenue Analysis

Despite the impressive profit growth, GAIL’s revenue from operations witnessed a decline, falling to Rs 31,882.62 crore in July-September compared to Rs 38,490.89 crore in the previous year. This drop in revenue can be attributed to lower gas prices during the period.

GAIL’s strong performance in key segments underscores its resilience and strategic focus, particularly in maximizing earnings from its gas transmission and marketing operations while effectively managing challenges in other business areas.