 "GAIL slumps on dismal quarterly results")
Shares of State-owned gas utility GAIL India are trading lower 4% to Rs 403 on the BSE after the company posted a massive 64 % drop in its December quarter net profit as it was unable to sell imported gas contracted at higher price.
Net profit in October-December stood at Rs 604.08 crore and was 64% lower compared to Rs 1,679.4 crore in the same period a year ago, the company said in a statement.
The profit was impacted by "lower off take of long-term contracted LNG by power and fertiliser plants," it added.
Net profit in Q3 was also impacted by Rs 500 crore fuel subsidy, the company said.
Revenue fell from Rs 16,246.71 crore in quarter ended December 31, 2013, to Rs 15,109.7 crore in the third quarter of current fiscal.
While sale from petrochemical business increased by 7 percent to Rs 1,246 crore, revenues from LPG and liquid hydrocarbons business fell to Rs 1,054 crore from Rs 1,933 crore in the corresponding period of last year. GAIL said natural gas sales fell to 74.08 mmscmd from 79.74 mmscmd in third quarter of last fiscal.
The stock opened at Rs 398 and touched a low of Rs 392 on the BSE. A total of 37,022 shares changed hands on the BSE so far.