GAIL Q3 results: Net profit jumps over two-fold to Rs 3,288 cr
GAIL’s profit in the October-December quarter rose 121 per cent to Rs 3,288 crore from Rs 1,487 crore in the year-earlier period, driven by spectacular gains in the natural gas marketing and LPG business. Revenue from operations rose 67 per cent to Rs 25,776 crore.
New Delhi: GAIL’s quarterly profit more than doubled from a year earlier on booming global gas and oil prices.
GAIL’s profit in the October-December quarter rose 121 per cent to Rs 3,288 crore from Rs 1,487 crore in the year-earlier period, driven by spectacular gains in the natural gas marketing and LPG business. Revenue from operations rose 67 per cent to Rs 25,776 crore.
The operating profit from marketing natural gas jumped to Rs 1,750 crore from a loss of Rs 74 crore in the year-ago period on global gas crunch that took LNG prices to record levels in the spot market during the quarter. Profit from the natural gas transmission business, however, remained nearly flat from a year earlier. A faster-than-expected demand recovery and a slower supply response have pushed up global gas prices.
Another earnings booster came from the LPG and liquid hydrocarbons business where the operating profit tripled to Rs 855 crore from Rs 283 crore a year earlier on higher prices. Rising oil prices have sharply pushed up LPG rates in the international market. Profit from petrochemicals, however, dropped 16 per cent to Rs 364 crore as feedstock cost rose.
“We believe GAIL is well-placed to take advantage of higher spot LNG prices, by making super-normal trading margins in the near term,” said Yogesh Patil, an analyst at Reliance Securities.
GAIL’s shares, valued at Rs 65,229 crore, ended 0.82 per cent up at Rs 146.90 on Thursday when the benchmark Sensex closed 1.29 per cent lower.
