Despite Lower Volumes GAIL Clocks 57% Rise In PAT

During the quarter natural gas transmission remained at 94.66 MMSCMD as against 99.49 MMSCMD transmitted during the same period last year. Despite this company’s top line increased from Rs 12409 crore in Q4FY13 to Rs14464 crore during Q4FY14, showing a jump of 17%. Net profit also increased by 57% to Rs 972 crore mainly on account of LPG and hydrocarbon sales and natural gas transmission.  

On the yearly basis company has earned a net profit of Rs 4375 crore during FY14 while it was at Rs 4022 crore during FY13, an increase of 9%. While turnover for the whole of the year was at Rs 57245 crore as against Rs 47333 crore earned during FY13, a jump of 21%. Company’s board has recommended a total dividend of 104%, while interim dividend of 45% has already been paid. 
GAIL’s performance on physical parameters was down but it was the price advantage that has saved the face. During Q4, the company’s natural gas sales was at 76.26 MMSCMD as against 80.13 MMSCMD sold during same period last year. Petrochemical production was also declined from 119 TMT to 83 TMT. LPG and other liquid hydrocarbon production also declined from 349 TMT to 288 TMT. 

“It is because of lower production of gas that has impacted us. If you see two years back our natural gas transmission was around 120 MMSCMD but it has now come down to 96.22 MMSCMD. Unless it will improve, it is really difficult to perk up our margins further,” informs B C Tripathi, CMD, GAIL.

GAIL has earmarked Rs 3105 crore for capex as against around Rs 4000 crore spent during last year. On the segment-wise revenue natural gas transmission business revenue increased by 85% to Rs 849 crore during Q4, while sales from LPG and hydrocarbon business has reached Rs 1486 crore from Rs 1315 crore earned during last year. On the other hand petrochemical sales has come down by 2% to Rs 1180 crore. Company is quite hopeful that with new policies of the new government, situation on the demand side would improve dramatically, mainly on Gas power plant and fertilizer front.