Gas Authority of India Ltd (GAIL) on November 4 posted a 46 percent year-on-year decline in standalone profit after tax at Rs 1,537 crore for the quarter ended September 2022, due to supply disruptions from a former unit of Russian energy giant Gazprom.
Net profit stood at Rs 2,862.95 crore in the same quarter last fiscal. Sequentially, too, net profit was lower by about 47 percent.
Soon after the earnings, the stock cooled off from day's high and tumbled over 1 percent. It closed at Rs 88.90 apiece on the National Stock Exchange, down by 1.86 percent.
GAIL's revenue from operations jumped 78 percent YoY to Rs 38,479 crore. Sequentially, revenue gained 2.4 percent from Rs 37,562 crore during the June quarter.
Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA, came in at Rs 1,765 crore, lower by 59 percent quarter-on-quarter. Margins also contracted to 4.6 percent from 11.6 percent in the June quarter.
While revenue was largely in-line with analyst estimates, net profit and EBITDA came in sharply lower from CNBC-TV18 poll of Rs 1,997 crore and Rs 2,614 crore, respectively.
"Due to ongoing geopolitics, there has been disruption in Liquified Natural Gas (LNG) cargo supplies by one of the long-term LNG suppliers," the company said in an exchange filing.
The company has taken various measures which includes reduction of supplies to downstream customers and its internal consumption at Pata petrochemical plant by reducing petrochemical production to have sustainable operation, it added.
Natural gas marketing segment, which is the biggest contributor to the company's revenues, saw a growth in sales but decline in profits. Revenue doubled to Rs 35,465.35 crore from Rs 17,876.53 crore from the year-ago period.
However, the segment's profit before tax almost halved to Rs 1,875 crore from Rs 3,682 crore in the same quarter last fiscal, largely on the back of surge in energy prices after Ukraine-Russia war.
GAIL transported 107.71 million standard cubic metres per day of natural gas in Q2, down from 109.47 mmscmd in the previous quarter. Gas marketing volumes also dropped almost 8 per cent to 92.54 mmscmd.
(With inputs from PTI)GAIL posts 46% decline in Q2 net profit at Rs 1,537 crore - Moneycontrol
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