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Gas Authority of India Ltd. (GAIL) reported a 92 percent year-on-year fall in standalone profit after tax for the quarter ended December 31, 2022, on January 30. In the previous fiscal year, its net profit was Rs 3,287 crore.
Net profit was down 84 percent from Rs 1,537 crore the previous year.
Following the state-owned firm’s dismal performance, the shares took a hit. GAIL was down 5% at Rs 93.75 on the National Stock Exchange at 2.15 p.m., despite significant trading activity. The trading volume of 17.3 million shares was above the 20-day average volume of 10 million shares. So far in 2023, the stock is down 2%.
Year on year, revenue from operations increased 37.2 percent to Rs 35,380 crore.The acquisition of trade stock (or the cost of products) then quadrupled from Rs 17,590 crore to Rs 32,190 crore.
Some segments lost money compared to the previous year. Natural Gas Marketing lost Rs 86 crore before interest and tax, petrochemicals lost Rs 348 crore, and LPG and liquid hydrocarbons lost Rs 29 crore at the EBIT level.
In its preview note, Kotak Institutional Equities stated that each of GAIL’s sectors encountered challenges in the previous quarter.
“Transmission has been impacted by lower volumes, reduced APM (Administered Pricing Mechanism) allocation, and high APM gas prices; LPG has been impacted by declining LPG prices and higher APM gas costs; and petchem has been impacted by reduced gas availability, resulting in lower plant utilization,” the firm stated.
