Gail (India) Ltd.'s consolidated net profit for the fourth quarter of fiscal 2023 declined more than two-third over the year ago period, as overall cost of operations rose and margin tumbled.
The net profit for the fourth quarter was down 81.5% YoY to Rs 642.74 crore, according to its exchange filing.
Gail (India) Q4FY23 Highlights (YoY)
Revenue from operations rose 21.7% to Rs 33,264.1 crore.
Operating profit, or Ebitda, was down 63.5% to Rs 1,555.8 crore on higher inventory cost.
Inventory of finished goods was up six times, while expense on purchase of stock-in-trade rose 49.1% to Rs 26,326 crore.
Operating margin fell 1,000 basis points to 4.67%.
In its profit and loss note, the company said that the customs authority at Dapoli, Maharashtra, have demanded Rs 934 crore (up to March 31, 2023), on account of Special Additional Duty and Customs Duty on differential quantity—including penalty and interest. It pertains towards finalising provisionally assessed Bill of Entries towards import of LNG by GAIL from September 2017 to March 2022, at Dabhol Port in Ratnagiri.
“Considering the merits of the case, the Parent Company is in process of filing an appeal before the Commissioner (Appeals) Pune … The Parent Company is confident of favourable outcome in the matter,” it said.
Shares of Gail (India) were trading 3.23% down on Thursday, as against a 0.21% decline in the benchmark Sensex.
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