Shares of state-owned gas utility GAIL India plunged over 6 per cent to Rs 365.50 on Tuesday after GAIL India post market hours on Monday reported a 69 per cent drop in its profit for the January-March quarter on account of write down in the value of its investment in Dabhol power plant. Gail India posted profit of Rs 260 crore for Q4 against Rs 832 crore profit for the same period previous year. Analysts polled by NDTV Profit had estimated its net profit at Rs 1,113 crore.
"We took an impairment of investment in Ratnagari Gas and Power Pvt Ltd (the company that runs Dabhol power plant) for Rs 783 crore," GAIL India chairman and managing director BC Tripathi told reporters.
The decline in net profit would have been higher but for Rs 489 crore it got from listing of its joint venture Mahanagar Gas Ltd by way of sale of shares through an IPO.
"The quarterly profit without the impact of the above impairment is Rs 1,043 crore, which is higher by 25 per cent on year-on-year basis," he said.
GAIL's turnover was up 16 per cent at Rs 13,644 crore in Q4.
For the full fiscal 2016-17, its net profit was up 57 per cent at Rs 3,503 crore mainly because of "a turnaround in the company's petrochemical business, increase in profits from gas transmission business and partial sale of stake in MGL", Mr Tripathi said.
But for the impairment and one-time gain from MGL share sale, GAIL's net profit in the fiscal year ended March 31, 2017 should have been Rs 3,797 crore, he added.
As of 12:06 pm, GAIL India shares traded 3.51 per cent lower at Rs 376.50 compared to 0.51 per cent drop in the broader Nifty. (With agency inputs)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
