India’s state-owned gas giant, GAIL (India) Ltd., faced a challenging second quarter, reporting a significant 17% year-over-year drop in its standalone net profit, which fell to ₹2,217.24 crore. This decline was largely attributed to a sharp rise in overall expenses, climbing 9.3% to ₹33,000.62 crore, primarily driven by an 8.6% increase in material costs.
Despite the profit dip, GAIL managed to see its revenues grow by approximately 6.5% during the same period, reaching ₹35,823.81 crore.
The company’s natural gas marketing division, a key revenue driver responsible for transmitting and distributing natural gas, saw its revenues climb 9.31% year-over-year to ₹31,422.71 crore in the September-end quarter. However, even this strong revenue performance couldn’t prevent a 1.86% slip in the segment’s profit, which stood at ₹1,304.12 crore compared to the previous year.
For the first half of the current financial year, GAIL (India) reported a total natural gas supply of 105.47 million metric standard cubic meters per day (MMSCMD). This volume was primarily channeled to the fertiliser industry (33%), city-gas distribution (27%), international markets (13%), and the power sector (10%), among other uses.
Focusing on the second quarter alone, GAIL’s total natural gas transmission volume, encompassing gas moved through pipelines and other infrastructure, reached 123.59 MMSCMD. Its marketing volume for the quarter was reported at 105.49 MMSCMD.
Following these financial disclosures, GAIL’s shares saw a slight downturn, closing 0.16% lower at ₹182.80 on the BSE and 0.49% lower at ₹82.20 on the NSE.