GAIL’s Net Profit Slips 8.5% in Q2, Petrochemicals Output Surpasses Q1 Levels
- 12-Nov-2020 11:00 AM
- Journalist: Francis Stokes
State-owned GAIL India has posted a consolidated net profit of INR 1,068.16 crore in the quarter ended September 2020, down by about 8.5% from INR 1,167.58 crore in the corresponding period last year. Overall turnover slipped by 23.7% to INR 14,104.80 crore owing to lower gas prices during the quarter.
GAIL highlighted about 18% cent improvement in its physical performance by transporting natural gas, 9% in gas marketing, 10% in LPG transmission, 22% in petrochemical sales and 12% in Liquid Hydrocarbon Sales, compared to Q1FY21.
The company’s petrochemicals business has witnessed a major upswing with plants operating back to normal levels, registering rise in industrial output by 65 per cent to 221 Thousand Metric Tonnes (TMT) as against 134 TMT in Q1 FY21. As per the details revealed by the company’s Chairman & Managing Director, Manoj Jain, the GAIL’s plants and pipelines have gained traction to pre-COVID levels in terms of operations.
He further mentioned that although the company’s capex during the first quarter was negatively affected during the lockdown, it is speeding up its work on the ongoing project to recoup for the incurred losses. During the April-Sep period, the company received 41 LNG cargoes from the US with 15 being traded overseas and the rest coming to India. The company anticipates that the period between October 2020 to March 2021 would be much better than the initial six months of FY21 for its LNG trading business.
ChemAnalyst anticipates that quick revival in the Natural gas demand with resumption in industrial operations would pave the way for company’s improved financials. With Indian companies actively engaged with Russia in the exploration and production of natural gas, the market outlook stays robust in the near term.