December 02, 2008

GAIL Q2 net profit up by 27% YoY on higher sales

GAIL India Limited has posted a net profit of INR 572.54 crore for July to September 2007 quarter up by 27.68% YoY on the back of lower subsidy payout to oil marketing companies and higher sales during the period. Net sales during the quarter has also increased by 22.17% YoY to INR 4,528.90 crore from INR 3,706.99 crore in the corresponding period last year.

Revenues from gas transmission raked in INR 568.30 crore during July to September 2007 quarter, up from INR 497.17 crore in July to September 2006 quarter. Trading of natural gas contributed INR 3,209.25 crore to the total revenue up from INR 2,923.68 crore.

For the April to September 2007 period, net profit has increased by 20.88% YoY to INR 1,257.76 crore from INR 1,040.48 crore in the corresponding period last year. Net sale has also increased by 12.7% YoY to INR 8,774.58 crore from INR 7,785.40 crore.

Mr RK Goel finance director of GAIL said that “There has been pressure on our financials during the quarter. Firstly, we are still sharing the burden of oil marketing companies’ subsidy. Secondly, the 7 year tax holiday for our petrochemicals plant at Pata in Uttar Pradesh has lapsed and this has effectively increased our tax rate by 3% to 32%. We are losing INR 600 crore on an annualized basis on polymer and LPG sales.”