Due to strong transmission volumes, GAIL (India) announced on October 31 an 87 percent increase in consolidated net profit for the second quarter of the fiscal year 2023–2024. The stock increased by two percent as a result of the favorable market reaction.
The largest gas distributor in the nation saw a consolidated net profit of Rs 2,442 crore in the second quarter, up from Rs 1,305 crore in the same period previous year. Net profit rose sequentially by 36% from Rs 1,793 crore in the quarter that concluded in June 2023.
Operational revenue for the quarter was Rs 33,050 crore, down from Rs 38,729 crore in the same time last year.
Natural gas transmission volume for the second quarter was 120.31 MMSCMD (million metric standard cubic meters per day), up from 116.33 MMSCMD for the first quarter. The volume of gas marketing was 96.96 MMSCMD this quarter, down from 98.84 MMSCMD the previous one.
The company did well throughout the quarter, according to Sandeep Kumar Gupta, Chairman and Managing Director, particularly in the gas transmission segment, which will continue to perform better. He said that reduced realisation in polymers and LPG, which are predicted to improve moving forward, limited performance during the quarter.
The natural gas transmission segment’s EBIT (profits before interest and taxes) increased to Rs 1291 crore in the reviewed quarter from Rs 710 crore in the corresponding period last year. The EBIT for natural gas marketing also grew, rising from Rs 309 crore in the same time last year to Rs 1,723 crore in Q2.
According to Gupta, the company spent over Rs 4,853 crore on capital expenditures in the first half of the year, mostly on equity investments in joint ventures, pipelines, and petrochemicals.
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