GAIL (India) Ltd.'s third-quarter net profit surged on higher sales and other income.
Net profit stood at Rs 3,288 crore, up 121% over the year earlier, in the three months through December, according to an exchange filing. That compares with the Rs 2,718-crore consensus estimate of analysts tracked by Bloomberg.
GAIL Q3 Results 2021-22: Key highlights (year-on-year)
Revenue (minus excise duty) rose 66.7% to Rs 25,769.8 crore, compared with the estimated Rs 25,211.6 crore.
Operating profit rose 120.3% to Rs 4,228.1 crore.
Other income rose 38.5% to Rs 651.8 crore.
Operating margin expanded to 16.4% from 12.4%.
GAIL's Q3 performance was supported by an increase in realization across gas trading and LPG/hydrocarbons segments as LNG, LPG and chemical prices jumped. Although, partly offset a rise in feedstock cost on account of higher price of domestic gas.
The company's transmission and natural gas marketing sales volumes rose 3.2% and 85.6%, respectively, over the year earlier. Its LPG and petrochemical volumes rose 74.6% and 24%, respectively.
India's overall gas consumption rose 2.5% over the year earlier to 16,373 mmscm in the third quarter on a 22.9% increase in domestic gas production, data released by the Petroleum Planning & Analysis Cell showed.
The company's petrochemicals segment was aided by a stable demand from the essential sectors such as health and hygiene, e-commerce and food packaging. The petrochemical cracks, however, were impacted by an increase in naphtha and crude oil prices. The polyethylene and polypropylene naptha spreads declined 3% and 16% year-on-year, while polyvinyl chloride spreads jumped 24%.
The Brent crude averaged at $79.7 a barrel in the third quarter compared with $45.26 a year ago. LNG imports fell 13.3% to 7,806 mmscm.
Shares of GAIL rose 1.5% after the results were announced compared with a 1% decline in the benchmark Nifty 50.
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