GAIL posts 46% drop in Q2 net profit at ₹1,537 crore

Sequentially, Q2 PAT dipped by 47.27% from a profit of ₹2,915.19 crore recorded in Q1FY23, according to a stock exchange filing of the company.

“Quarter on Quarter basis, Revenue from Operations reported is ₹38,491 crores in Q2 FY23 as compared to ₹37,572 crores in Q1 FY23. PBT stood at ₹1,876 crores in Q2 FY23 as against ₹3,894 crores in previous quarter and PAT stood at ₹1,537 crore as compared to ₹2,915 crore in previous quarter,” the company said in a statement.

On segment-wise performance, in Q2FY23, GAIL’s revenue from natural gas stood at ₹1,694.43 crore versus ₹1,646.23 crore in Q2FY22, while LPG revenue came in at ₹197.34 crore against ₹166.62 crore in Q2FY22.

GAIL said it transported 107.71 million standard cubic metres per day of natural gas in Q2 (July-September), down from 109.47 mmscmd in the previous quarter. Gas marketing volumes also dropped almost 8 per cent to 92.54 mmscmd.

GAIL said there was a disruption in liquefied natural gas (LNG) supplies by a former unit of Russia’s Gazprom. “The company has taken various measures which include reduction of supplies to downstream customers and its internal consumption at Pata petrochemical plant (in Uttar Pradesh) by reducing petrochemical production to have a sustainable operation,” it said.

Gazprom Marketing and Trading Singapore (GMTS), now a subsidiary of Gazprom Germania, stopped delivery of LNG cargoes to GAIL in May/June as it was unable to source gas from Russia following sanctions.

In response, GAIL, which imports and distributes gas and also operates India’s largest gas pipeline network, cut supplies to some fertiliser plants and industrial clients.

“During the quarter, Natural gas transmission volume stood at 107.71 MMSCMD in Q2 FY23 as against 109.47 MMSCMD in Q1 FY23. Gas marketing volume stood at 92.54 MMSCMD as against 100.84 MMSCMD in previous quarter. LHC sales stood at 231 TMT as against 220 TMT & Polymer sales stood at 108 TMT as against 109 TMT in comparison to previous quarter,” the statement said.

“The company has incurred a Capex of around ₹3,970 crores during the current half year mainly on Pipelines, Petrochemicals, Equity to JVs, etc. which is 53% of annual target,” said Sandeep Kumar Gupta, Chairman & Managing Director, GAIL.

“GAIL has been declared as successful Resolution Applicant by the Committee of Creditors for acquiring JBF Petrochemical Limited through Corporate Insolvency Resolution Process. With this the company will further expand its presence in southern part of country,” he added.

Meanwhile, the company’s total expenses nearly doubled to ₹37,413.82 crore in the second quarter of FY23, compared to ₹18,606.99 crore in Q2 of FY22.

During Q2FY23, GAIL issued bonus shares in the ratio of one equity share for every two existing equity shares. The ratio comes at 1:2 at a face value of ₹10 each.

On Friday, GAIL shares closed at ₹88.90 apiece down by 1.82% on NSE.

(With inputs from PTI)