The Profit Before Tax during Q4 2007-08 increased by 101% to Rs. 1,098 crore from Rs. 546 crore during Q4 of 2006-07. The Net Profit during Q4 of 2007-08 increased by 6 percent to Rs. 722 crore from Rs. 681 crore in the corresponding period last year.
Discussing the highlights of the year's performance in the strategic core areas, Dr. U D Choubey, Chairman and Managing Director, GAIL informed that apart from the financial performance, all the ongoing projects were progressing well.
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Among the natural gas pipeline projects, in the Vijaipur-Dadri-Bawana pipeline at an estimated investment of Rs. 5,492 crore, GAIL is aiming for completion on best effort basis by June 2009 and the compressors commissioning by June 2010. On completion, the capacity of Dahej-Vijaipur-Dadri pipeline would reach 78 MMSCMD. The Chainsa-Jhajjar pipeline at an estimated investment of Rs. 536 crore is also aimed to be completed by September 2009. The capacity of this pipeline is 35 MMSCMD. Further, the KG Basin loopline project and Reliance pipeline connectivity project at KG basin, Gujarat and Maharashtra are about to be completed.
The projects to be taken in phase-II for completion by 2011 for which pre-project activities have been already initiated are Dabhol-Bangalore Pipeline at an estimated investment of Rs. 3,568 crore with a capacity of 16 MMSCMD, Kochi-Kanjirkod-Banglore-Manglore at an estimated investment of Rs.3500 crore with a capacity of 16 MMSCMD and the Jagdishpur-Haldia pipeline at an estimated investment of Rs.6500 crore with a capacity of 32 MMSCMD.
GAIL is setting up a Petrochemical Complex in Assam through JV route along with Numaligarh Refineries Limited, Oil India Limited and the Government of Assam at a project cost of Rs.5460 crore. The complex has a capacity of 220,000 tons per annum (TPA) of Ethylene and 60,000 tons per annum of propylene. The project completion is 60 months from the zero date of September 2007.
GAIL has also signed an MoU with HPCL, TOTAL, LN MITTAL and OIL for setting up an Integrated Refinery and Petrochemical Complex at Visakhapatnam.
On the City Gas front, a wholly owned subsidiary (GAIL Gas Ltd.) is being incorporated to set up city gas projects across country. The initial authorized capital of the subsidiary is Rs. 200 crore. The CEO and COO of the company have already been appointed. Chairman, GAIL shall be the Chairman of the subsidiary company
A JV (GAIL China Gas Global Energy Holding Ltd.) has been floated with China Gas Holding Ltd. to pursue the potential projects such as Beijing Gas CNG, CBM in inner Mongolia and Petrochemical based on coal.
Talking about some of the activities in the Business Development area, he said that India has officially entered into TAPI pipeline project with the signing of Gas Pipeline Framework Agreement recently and a similar positive response has emerged on the progress of Iran-Pakistan-India pipeline. He further added that GAIL is looking for participating aggressively in NELP VII.
In the area of Corporate Governance, he said that GAIL has signed an MoU with Transparency International India Ltd. for implementation of Integrity Pact in GAIL in its procurement system in order to curb the menace of corruption.
In the CSR sphere, GAIL has created a GAIL Charitable and Education Trust with a fund Rs. 20 crore to extend financial support on merit-cum-means to school going children as well as professionals.
Financial Performance details
GAIL is one of the leading public enterprises with a consistently excellent financial track record. Turnover during the last ten years has shown a compounded annual growth rate of 13 percent. Market capitalization of the company as on March 31, 2008 reached around Rs. 35,000 crore as against Rs. 22,372 crore, a year ago.
The PAT of Rs. 2, 601 crore was achieved due to higher price, higher sales quantity of polymers, LPG and Other Liquid Hydrocarbons, increase in gas throughput, increase in LPG transmission quantity and some decrease in subsidy sharing in domestic LPG and PDS kerosene. The subsidy sharing in domestic LPG and PDS kerosene for Rs. 1,314 crore in 2007-08 (against Rs. 1, 488 crore in 2006-07). Without the subsidy element, the PBT would have increased by 19 percent to Rs. 5,169 crore and PAT would have increased by 33 percent to Rs. 3,468 crore.
Top line growth is a cumulative result of the overall increase in the natural gas business, polymer sales and also in LPG transmission. The revenue from petrochemical segment has increased by 17 percent from Rs.2,204 crore to Rs.2,591 crore primarily due to increase in sales quantity and average sale price. The revenue from LPG transmission has increased by 13 percent from Rs. 344 crore to Rs. 389 crore due to increase in the quantity transported. The revenue from Natural Gas trading has also increased by 5 percent from Rs. 12,021 crore to Rs. 12,658 crore due to increase in trading quantity and average sale price. The revenue from Natural Gas Transmission has increased from Rs. 2,214 crore to Rs. 2,286 crore registering a growth of 3 percent.
During the year 2007-08, consolidated financial statements of GAIL, incorporating the accounts of subsidiary, JVs and associated companies have also been prepared. Based on the consolidated financial statements, the total earnings of GAIL were Rs. 19,441 crore. The consolidated Gross Margin was Rs. 4,893 crore, the Profit Before Tax was Rs. 4,102 crore and Profit After Tax was Rs. 2,783 crore.
The Earning Per Share (EPS) increased to Rs. 30.76 per share in the year 2007-08 as against Rs. 28.22 per share in the year 2006-07. The EPS as per consolidated statement was Rs. 32.91 per share, while book value has increased to Rs. 154 from Rs. 134 per share.
During the year 2007-08, fixed assets to the tune of Rs. 2,066 crore were capitalized on account of Dahej - Uran Pipeline, Dahej - Panvel Pipeline, Petrochemical Expansion at Pata, and Jagoti- Dewas