Stake Sale In China Gas Helps GAIL To Clock 32% rise in PAT

Public sector Gas trading Major GAIL put forward a robust show in otherwise dismal environment owing to long term stake sale in China gas. Company has earned a profit of 345 crore during Q3 by sale of 60 million stocks of China gas that it had acquired few years ago. Gail still holds 210 million shares in the company. Due to this transaction company’s net profit spurted to Rs 2451 crore as against Rs 1859 crore earned during Q3FY13, a rise of whooping 32%. On the revenue front though, the company showed growth of 28 per cent to clock a topline of Rs 15980 crore. Commenting on the company’s performance B C Tripathi, CMD, GAIL said; “Low margins realized from natural gas trading still remain a concern for the company. Capping of subsidy at Rs. 1400 crore by the ministry proved beneficial for the company and helped us to improve our margins.” 

On the operational part company’s profit from gas transmission rose by 20% to Rs 1189 crore, while natural gas trading sales also increased by 31%  to Rs 13287 crore as against Rs 10118 crore clocked last year. Revenue from LPG and hydrocarbon has also increased by robust 51% to Rs 1933 crore during the quarter. On the volume front persistent decline continued in Q3 also owing to reduced domestic supply. 

Company sold 79.74 MMSCMD of natural gas as against 81.77 MMSCMD sold during corresponding period last year. Big jolt came in the form of natural gas transmission that dropped from 104.59 MMSCMD to 95.70 MMSCMD during Q3. “Company is on track in achieving Rs 4400 crore capex this year and we will invest Rs 3300 crore during next fiscal,” added B C Tripathi. 

Though the company’s board hasn’t deliberated upon interim dividend matter, as of now it has fixed a date of February 6 to consider about interim dividend and February 11 has been fixed as the record date for the matter.