GAIL slides as Q3 PAT drops 89% YoY to Rs 414 cr

GAIL (India) tumbled 5.50% to Rs 93.70 after the company's consolidated net profit slumped 89.06% to Rs 413.71 crore in Q3 FY23 from Rs 3,780.78 crore in Q3 FY22.

However, net revenue from operations during the quarter rose by 37.25% YoY to Rs 35,884.51‬ crore in the quarter ended 31 December 2022.

Profit before tax in Q3 FY23 stood at Rs 662.07 crore, down by 86.26% from Rs 4,819 crore in Q3 FY22.

In the Transmission Services segment, gross revenue from Natural Gas was Rs 1,658.72 crore (down 0.84% YoY) and that from LPG was Rs 180.06 crore (up 7.43% YoY).

Further, the gross revenues of the Natural Gas Marketing segment jumped 61.1% to Rs 40,462.38 crore in Q3 FY23 from Rs 25,117.73 crore recorded in the same period last year.

Petrochemicals revenue was Rs 750.52 crore (down 68.73% YoY), LPG And Liquid Hydrocarbons revenue was Rs 1,354.94 crore (down 11.6% YoY) and City Gas revenue was Rs 2,827.78 crore (up 30.48% YoY) in Q3 FY23.

Total expenses surged 63.39% to Rs 36,276.60 crore in Q3 FY23 from Rs 22,202.97 crore in Q3 FY22, due to a sharp spike in purchase cost of traded goods (up 2.05x YoY) and higher other expense charges (up 30.8% YoY).

On a standalone basis, the company reported 92.53% slump in net profit to Rs 245.73 crore despite OF 37.24% rise in net revenue from operations to Rs 35,365.43‬ crore in Q3 FY23 over Q3 FY22.

During the quarter, Natural gas transmission volume stood at 103.74 MMSCMD in Q3 FY23 as against 107.71 MMSCMD in Q2 FY23. Gas marketing volume stood at 89.89 MMSCMD as against 92.54 MMSCMD in previous quarter. LHC sales stood at 248 TMT as against 231 TMT & Polymer sales stood at 65 TMT as against 108 TMT in comparison to previous quarter.

Sandeep Kumar Gupta, chairman & managing director, GAIL said that the company's revenue from operations has crossed Rs 1 lakh crore during nine months ended 31 December 2022, which is highest ever in any financial year.

He further added that the company has raised sum of Rs 1,575 crore by issuing redeemable non-convertible debentures at a highly competitive rate and incurred capex of approximately Rs 6,278 crore during the nine months mainly on pipelines, petrochemicals, operational capex etc. which is 79% of annual target.

The state-owned GAIL (India) is one of the largest natural gas processing & distribution company. The Government of India held 51.91% stake in Gail (India) as on 31 December 2022.

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