GAIL Q2 Results: Profit Jumps 87% On Higher Other Income
GAIL India Ltd.’s second-quarter profit rose as other income surged.
Net profit rose 87% sequentially to Rs 2,862.9 crore in the three months through September, it said in an exchange filing. That compares with the Rs 2,072.9-crore consensus estimate of analysts tracked by Bloomberg.
Q2 Highlights (QoQ)
Revenue rose 23.7% to Rs 21,511 crore, compared with the Rs 19,428.7-crore forecast.
Operating profit rose 44.1% to Rs 3,475.1 crore.
Operating margin expanded to 16.2% from 13.9%.
Total expenditure rose 19.8% to Rs 18,607 crore.
Other income jumped 3.9 times to Rs 774 crore.
GAIL’s earnings were supported by higher volumes across segments, while marketing profit was boosted by higher gas prices. Increased production after a shutdown in the preceding quarter aided petrochemical volumes. A rise in gas consumption supported transmission volumes.
The company’s transmission and natural gas marketing sales volumes grew 10% and 25.1% quarter-on-quarter, respectively. LPG volumes rose 9.5%.
Brent crude prices rose 5.9% sequentially to $73.2 a barrel in Q2.
India's liquefied natural gas imports rose 4.6% quarter-on-quarter to 7,981 million metric standard cubic meters in the second quarter, data released by the Petroleum Planning & Analysis Cell showed. Overall gas consumption increased 3.5% sequentially to 16,143 mmscm.
Shares of GAIL were trading 1.87% higher after the results were announced compared with a 1.16% decline in the Nifty 50.