State-run gas utility GAIL India (GAIL) on Tuesday reported a 10 percent increase in net profit for the third quarter ending December 31, 2015, on the back of greater margins, as well as exemption from payment of fuel subsidy,
In a stock exchange filing, the company reported a net profit of Rs.664.26 crore in the quarter in consideration, which was 9.96 percent higher than the Rs.604.08 crore profit after tax posted in the same period a year ago.
GAIL revenues fell by over 10 percent to Rs.13,451.58 crore in the October-December quarter, compared with Rs.14,969.41 crore for the same period of the last fiscal, caused by lower gas volumes transported through the company's pipelines.
Revenue from marketing natural gas dropped 11 percent due lower gas prices to Rs.11,686.53 crore for the quarter in question.
However, GAIL's profits from business rose nearly ten-fold to Rs.483.42 crore during the quarter, from Rs.51.14 crore in October-December 2014.
Moreover, the company was not required to pay fuel subsidies during the quarter, while it had paid Rs.500 crore in the same period a year ago, to partly make up losses incurred by retailers on selling cooking gas (LPG) and kerosene at regulated rates.
GAIL said earnings from its gas transmission business fell by 16 percent during the third quarter to Rs.427.69 crore on lower volumes transported, while it posted a loss of Rs.160.56 crore on petrochemical sales.
The company also said its board of directors approved payment of an interim dividend of 25 percent at Rs.2.50 per equity share for the current fiscal.
GAIL stock closed on Tuesday at Rs.348.60 a share, up 5.10 points, or 1.48 percent, over its previous close on the Bomabay Stock Exchange
