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GAIL (India) Ltd reported a 50.6 per cent increase in net profit for the fourth quarter of FY16, on higher transmissions and better gas trading margins.
Net profit for the quarter stood at ₹770 crore, compared to ₹511 crore in the corresponding quarter last year.
However, net sales fell 18.3 per cent to ₹11,627 crore (₹14,235 crore) due to a fall in petrochemicals and LPG realisations.
Dip in prices“Petrochemical prices during the quarter were down 25 per cent while LPG prices were 40 per cent lower. That has impacted the overall net sales. However, there was higher transmission of gas and gas trading margins were better, which is why net profit has increased,” said BC Tripathi, Chairman and Managing Director of GAIL (India).
On the operational front, Tripathi said the Jagdishpur-Haldia pipeline has now been renamed to Phulpur-Dhamra-Haldia.
“This pipeline will be over 2,000 km long and require over ₹12,000 crore of investment,” he added. The project will be completed in three phases.
In the first phase, expected to be completed by December 2018, eastern Uttar Pradesh and Bihar will be connected in a 750-km stretch costing close to ₹3,200 crore.
The second phase will cover 1,200 km and will be built at a cost of ₹5,565 crore, and the third phase will cover 583 km at a cost of ₹5,425 crore. Both the second and third phases are expected to be completed by December 2019. “The government has already given its approval for three fertiliser plants on this stretch including Barauni and Sindri. These will be our anchor customers,” said Tripathi.
Tripathi said retail supply will start in Bengaluru in a month. The company will spend ₹650 crore to upgrade infrastructure in the city.
LNG shipsGAIL (India) is also considering two bids for the supply of LNG ships — from consortia led by Mitsui & Co Ltd and GasLog Ltd. “We will have a clear picture about the bids by next month. Evaluation of technical bids is under process, and we hope to open the price bids by July. By September, we expect to award the contract,” said Tripathi.
GAIL (India) will purchase nine LNG cargo ships with capacity of 1,50,000-1,80,000 cubic meters.
For FY16, GAIL’s net sales fell 13.3 per cent to ₹51,614 crore (₹ 56,560 crore). Net profit w24.3 per cent lower at ₹2,299 crore (₹3,039 crore).
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