GAIL India Q1 net profit rises 15% to Rs 1,288 crore, revenue up 6%

State-run GAIL India on Friday reported 15 per cent quarter-on-quarter (QoQ) growth in its standalone profit after tax (PAT) at Rs 1,288 crore for the first quarter ended June 30, 2019, helped by a better financial performance by gas marketing, gas transmission segments and liquid hydrocarbon segment.

"The country's largest state-owned natural gas processing and distribution company had posted a standalone PAT of Rs 1,122 crore during the same quarter last year," GAIL India said in a filing to the Bombay Stock Exchange.

On a yearly basis, GAIL's PAT rose merely by 2 per cent to Rs 1,259 crore in the corresponding quarter of FY2019.

Standalone revenue from operations grew by 5.9 per cent to Rs 18,311 crore in April-June quarter of the current fiscal as against Rs 17,298.59 crore in the year-ago period. The other income increased to Rs 151.18 crore as against Rs 119.61crore in the same quarter last year and Rs 865.88 crore in March quarter.

On a consolidated basis, GAIL's net profit stood at Rs 1,504 crore and revenue was at Rs 18,467 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 34.3 per cent QoQ to Rs 2,357.6 crore, while EBITDA margin rose by 360 basis points to 12.8 per cent.

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The total expenses of the company increased to Rs 16,482 crore in Q1FY20 versus Rs 15,478 crore in Q1FY19.

GAIL India said that Petroleum and Natural Gas Regulatory Board (PNGRB) has issued various provisional transportation tariff orders in respect to natural gas pipeline tariff. Some of these orders have been contested by the company with Appellate Tribunal for Electricity (APTEL), which were sent back for review to PNGRB.

Commenting on Q1 earnings, GAIL Chairman and Managing Director Ashutosh Karnatak said the increase in net profit in June quarter 2019-20 was supported by better financial performance in natural gas marketing and transmission segments which outshone a muted performance in petrochemicals.

Boosted by Q1 earnings, shares of GAIL India closed 1.48 per cent higher at Rs 123.70 apiece on the BSE.

Edited by Chitranjan Kumar