State-owned gas utility GAIL India Ltd.’s quarterly profit fell but was largely in line with estimates.
Net profit declined 4 percent over the previous three months to Rs 1,262.2 crore in the quarter ended December, GAIL said in a stock exchange filing. The Bloomberg consensus estimate stood at Rs 1,294 crore. Revenue increased 16 percent to Rs 14,414 crore, surpassing the consensus estimate of Rs 13,748 crore.
The state-owned company’s operating income fell 5 percent to Rs 1970 crore, while operating margin contracted to 13.7 percent from 16.7 percent.
- Petrochemicals business rose 2.3 percent to Rs 1,443.16 crore on a quarterly basis.
- In the transmission services business, natural gas revenue declined 8.7 percent to Rs 1,331.31 crore, while LPG grew 0.14 percent.
Indian Oil Corporation Ltd. and Bharat Petroleum Corp Ltd. both have shown interest to acquire GAIL India to become fully integrated energy companies. However, according too GAIL, a merger with ONGC makes more sense as it would integrate gas producer with a transportation and marketing network.
Shares of the company closed 0.3 percent higher on the BSE ahead of the earnings announcement. GAIL gained 19.23 percent in December quarter.