GAIL Q2 net down 42% at Rs 448 crore
The net profit stood at Rs 774 crore during the same period last year.
By PTI |
NEW DELHI: Gas utility GAIL India on Monday reported a 42.11 per cent drop in net profit at Rs 448 crore in the second quarter ended September 30, due to increased share of subsidy and lower availability of gas at Hazira owing to floods in Gujarat.
The net profit stood at Rs 774 crore during the same period last year.
Gas supply was effected during the period from August 8 to September 9 due to floods in Gujarat, which resulted in lower availability of gas at Hazira.
This resulted in loss of production of petrochemical, LPG and liquid hydrocarbon products and loss of transmission charges in the HVJ pipeline system.
The decrease in the net profit was also due to increased share of subsidy in the first half of the current financial year that has more than doubled to Rs 671 crore as against Rs 320 crore in the corresponding period of the previous year.
"But for the higher subsidy and lower availability of gas at Hazira, the sales and PBT for the first half of 2006-07 would have been higher by approximately 23 per cent and 10 per cent respectively compared to the corresponding period last year," GAIL said in a statement.
Net profit for the first half of the current financial year was also down by 17.24 per cent at Rs 1,041 crore against Rs 1,258 crore in the corresponding period of the previous year.
In order to improve the top and bottom line, the company is firming up short term and long term business plans particularly in the area of gas availability through additional spot RLNG cargos.
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