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GAIL Q2 Results: Profit Jumps 87% On Higher Other Income

GAIL India’s net profit rose 87% sequentially to Rs 2,862.9 crore in Q2.

<div class="paragraphs"><p> A GAIL India Ltd. logo sits on display during a news conference in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)</p></div>
A GAIL India Ltd. logo sits on display during a news conference in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)

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.