Petronet LNG Q2 results: Net profit rises 9%, will invest Rs 20,685 crore

Petronet LNG Ltd, India's largest liquefied natural gas importer, on Monday reported a 9 per cent rise in the September quarter consolidated net profit as margins rose.

It posted a consolidated net profit of Rs 855.74 crore, or Rs 5.70 per share, in July-September compared with Rs 785.73 crore, or Rs 5.24 a share, earning in the same period a year ago, according to a company's stock exchange filing.

Revenue was down 21.6 per cent at Rs 12,532.57 crore on lower gas prices.

Margin rose to 9.7 per cent in the second quarter of the current fiscal.

Petronet said its board of directors approved an investment of Rs 20,685 crore for setting up a petrochemical plant at Dahej in Gujarat.

The petrochemical plant, which will come up adjacent to India's largest LNG import facility operated by the company, will consist of a 750,000 tonnes per annum propane dehydrogenation plant (PDH) and 500,000 tonnes a year of poly-propylene plant.

"The project would bring revenue generation from the sale of poly-propylene, propylene, propane, hydrogen and ethane," it said.

Petronet plans to develop 25 hectares of green belt area in the region.

"Besides significantly improving the top line and the bottom line of the company, the project aims to enhance the self-efficiency of the country in the field of petrochemicals," it added.

The board of directors also accorded its approval for the execution of a binding term sheet with Deepak Phenolics Limited (DPL) for the offtake of 250,000 tonnes of propylene and 11,000 tonnes of hydrogen from Petronet Petrochemical Project at Dahej for a period of 15 years.