Gail sees Q1 performance this year

NEW DELHI: State gas utility Gail India Ltd (GAIL) expects its first quarter performance to be on the positive side, despite a high subsidy burden and rising gas prices.

"We are going to be better off compared to last years's performance," GAIL Director (Finance) R K Goel told PTI.

He, however, declined to put any numbers on the estimated results.

"The Board is scheduled to meet on July 17 to take up the unaudited results for the first quarter of the current financial year," he said.

The company had reported a 43 per cent rise in Profit After Tax at Rs 483 crore in Q1 of FY'06.

Goel said the company has seen significant growth during the period despite rising gas prices, which have gone up from 1.95 dollar per mmbtu to 4.75 dollars per mmbtu since last July.

"We have taken into account the estimated subsidy burden and the impact of rising gas prices in our performance for the quarter," Goel said.

GAIL has informed the Petroleum Ministry that its profits were under heavy pressure and its Profit Before Tax is likely to plummet in 2006-07 due to increase in gas price for its own consumption, reduction in transmission tariff of its HVJ, Dahej-Uran, and KG basin pipelines.

It has also cited lowering of marketing margins on regasified LNG and the impact of pay revision and profit sharing as the reasons for the negative impact.