GAIL reports 16.5% growth in its net profit to ₹1,239 crore for the second quarter

Gas transportation utility GAIL on Tuesday reflected the general positive sentiment in the economy during the unlock phase reporting 16.5 per cent growth in its net profit for the July-September quarter of current financial year to Rs 1,239 crore as compared Rs 1,065 crore profit in the corresponding period of previous fiscal.

The net profit, however, recovered by a wider margin compared to the previous quarter (Q1 of FY21) when the economic impact of lockdown was more pronounced. In Q1, GAIL's profits had slipped to a mere Rs 256 crore.

As per a company statement, after relaxations in the lockdown imposed due to pandemic in Q1 and with the resumption of economic activities, the volumes picked up in all segments to normal levels in Q2 FY21 resulting in an increase in the profit as compared to Q1 FY21.

With regard to the turnover, GAIL recorded 13 per cent growth in Q2 to Rs 13,611 crore vis-a-vis Rs 12,060 crore in Q1 FY21.

Both physical as well as financial performance of the company improved across all major segments in Q2. The Physical Performance improved by 18 per cent in Natural Gas Transmission, nine per cent in Gas Marketing, 10 per cent in LPG Transmission, 22 per cent in Petrochemical Sales and 12 per cent in Liquid Hydrocarbon Sales.

GAIL's Petrochemical business has seen a major turnaround. The plant is operating back to normal levels with a jump in production by 65 per cent to 221 TMT as against 134 TMT in Q1 of FY21. On account of better physical performance and price realization, the profitability of the segment has reached Rs 170 crore during Q2 FY21.

On a half-yearly basis, GAIL recorded turnover of Rs 25,671 crore in H1 FY21 as against Rs 36,286 crore in H1 FY20 and PAT of Rs 1,495 crore in current half year as against Rs 2,352 crore in H1 FY20.

During the quarter, the group's consolidated turnover stood at Rs 13,774 crore as against Rs 12,152 crore in Q1 FY21 while the group's PAT stood at Rs 1,068 crore as against Rs 643 crore in Q1 FY21.

Manoj Jain, Chairman & Managing Director, GAIL said that the company's plants and pipelines have achieved the pre-Covid level of performance. He further added that though the Capex during the 1st quarter was affected due to the lockdown, GAIL has moved swiftly to make up for the lost time and is trying to accelerate the progress in its ongoing projects.

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