GAIL Q2 net slips 35 per cent as petrochemical logs loss, gas marketing margin slumps

State-run GAIL India Ltd on Friday reported a 35 per cent drop in September quarter net profit as margins on natural gas marketing slumped and petrochemical business slipped into a loss. Consolidated net profit of Rs 1,167.58 crore, or Rs 2.59 per share, in July-September compared with Rs 1,788.98 crore, or Rs 3.96 per share, profit after tax in the year-ago period, the company said in a regulatory filing. While pre-tax profit from natural gas transmission business fell 10 per cent to Rs 803 crore, petrochemical business logged a Rs 82.32 crore loss. Natural gas marketing business saw pre-tax profit drop by 70 per cent to Rs 241.72 crore.

Pre-tax profit on LPG and liquid hydrocarbon business fell 68 per cent to Rs 245.35 crore. In a statement, GAIL said improved physical performance in the current quarter helped the company in maintaining its gross turnover at Rs 18,010 crore. “The physical performance has improved in petrochemical, LPG transmission, liquid hydrocarbon, and gas transmission segments by 59%, 21%, 11%, and 3% respectively as compared to Q1 of FY20,” it said.