GAIL Q2 net profit tops estimates, rises 9% to ₹2,672 crore; revenue up 3%
State-owned gas utility GAIL (India) Ltd on Tuesday (November 5) reported a 9.41% year-on-year (YoY) increase in net profit at ₹2,672 crore for the second quarter that ended on September 30, 2024.
In the corresponding quarter of the previous fiscal, GAIL (India) posted a net profit of ₹2,442.18 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹2,591 crore for the quarter under review.
The company’s revenue from operations increased 3% to ₹32,912 crore. The CNBC-TV18 poll had predicted revenue of ₹33,673 crore for the quarter under review.
At the operating level, EBITDA was up 7% to ₹3,744 crore in the second quarter of this fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹4,529 crore for the quarter under review.
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The EBITDA margin stood at 11.37% in the reporting quarter compared to 10.97% in the year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 12.3% for the quarter under review.
On a quarter-on-quarter (QoQ) basis, GAIL reported revenue from operations of ₹32,931 crore in Q2 FY25, compared to ₹33,692 crore in Q1 FY25. Profit before tax (PBT) for the quarter stood at ₹3,453 crore, down from ₹3,642 crore in the previous quarter, while profit after tax (PAT) decreased slightly to ₹2,672 crore from ₹2,724 crore.
In Q2 FY25, the petrochemical segment achieved a PBT of ₹157 crore, reversing a loss of ₹42 crore recorded in Q1 FY25. Sandeep Kumar Gupta, CMD of GAIL, indicated that the petrochemical segment is expected to remain profitable for FY 2024-25.
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For Q2 FY25, GAIL’s natural gas transmission volume reached 130.63 MMSCMD, with gas marketing volume at 96.60 MMSCMD. Sales in the liquid hydrocarbon (LHC) and polymer segments reached 253 TMT and 226 TMT, respectively, up from 218 TMT and 169 TMT in Q1 FY25.
The company incurred a capital expenditure of ₹1,885 crore during Q2, primarily allocated to pipelines and petrochemical projects, bringing the cumulative capex for H1 FY25 to ₹3,544 crore.
The results came after the close of the market hours. Shares of GAIL (India) Ltd ended at ₹196.40, up by ₹0.30, or 0.15%, on the BSE.
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