GAIL (India) declined 0.97% to Rs 97.10 after the company posted a 57.2% drop in consolidated net profit to Rs 642.97 crore in Q1 June 2020 as against Rs 1503.67 crore reported in Q1 June 2019.
Consolidated revenue from operations stood at Rs 12,180.62 in Q1 June 2020, falling 34% from Rs 18481.56 crore in Q1 June 2019. The result was announced during market hours today, 13 August 2020.Profit before tax came at Rs 728.74 crore in quarter ending June 2020, 68% lower than Rs 2307.46 crore in quarter ending June 2019. Total tax expense fell 89% year on year to Rs 85.77 crore in Q1 June 2020 over Q1 June 2019.
GAIL said that the COVID-19 impacted company's physical performance due to nationwide lockdown. However, the company said it expects to reach normal levels during upcoming period in FY 2020-21. The company clarified that it assessed the possible impact of COVID-19 in preparation of financial results based on the internal and external sources of information and expects no significant impact on the continuity of the business on long term basis.
Further, Department of Telecommunication (DoT), Ministry of Communications, Government of India vide letter dated 14 July 2020 has withdrawn the additional demand of Rs 1,83,076 crore raised on the company towards provisional annual assessment of license fees in respect of IP-II license forvarious financial years. With this, nothing remains payable to DoT by the company.
GAIL (India) is an integrated energy company in the hydrocarbon sector and is engaged in gas marketing. As of 30 June 2020, the Government of India held 52.10% stake in the company.
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