News

Published: May 17, 2024
Updated: May 17, 2024

GAIL's Q4 Net Profit Surges 289% to Rs 2,469 Crore

Impressive Quarterly Performance

State-owned gas supplier GAIL reported a significant 289% increase in consolidated net profit for the fourth quarter of FY24, reaching Rs 2,468.71 crore compared to Rs 634.2 crore in the same period last year. This substantial rise is attributed to a low base in the previous year, which was affected by supply disruptions from Russian energy giant Gazprom and elevated global gas prices. Despite the yearly increase, GAIL's net profit sequentially declined by 22.7%, down from Rs 3,194.6 crore in the third quarter of FY24.

Revenue Trends

The company's consolidated revenue from operations saw a slight decline of 1.2% in Q4 FY24, amounting to Rs 32,833.2 crore, compared to Rs 33,264 crore in Q4 FY23. This marginal decrease was accompanied by an improvement in gas trading margins, increased transmission volume, and higher transmission tariffs.

Annual Financial Highlights

For the entire FY24, GAIL's cumulative net profit rose by 76% to Rs 9,899.2 crore, up from Rs 5,616 crore in the previous fiscal year. The company reported a decrease in stock purchases, with Rs 24,115.1 crore worth of stock in trade acquired in Q4, compared to Rs 26,326.58 crore in the same quarter of the previous year.

Operational Achievements

GAIL transported 123.65 million standard cubic meters of gas per day (MMSCMD) in Q4, an increase from 121.54 MMSCMD in the previous quarter. Gas marketing volumes also saw a slight rise, reaching 98.45 MMSCMD from 98.14 MMSCMD.

Strategic Investments

The company's Chairman and Managing Director, Sandeep Kumar Gupta, highlighted GAIL's robust performance across all major segments despite lower prices in Petrochemicals and Liquid Hydro-Carbons. He noted that GAIL incurred a capital expenditure of Rs 11,426 crore during FY24. Additionally, the Board approved the construction of a C2/C3 liquid pipeline from Vijaipur to Auraiya at an estimated cost of Rs 1,792 crore, with a commissioning period of 32 months. This project aims to enhance feedstock availability, boost polymer production at the Pata petrochemical complex, and reduce energy consumption and carbon footprint.

GAIL's strong financial performance in Q4 FY24 and the entire fiscal year underscores its resilience and strategic growth initiatives. The company's focus on expanding its infrastructure and improving operational efficiency is expected to drive continued growth in the coming years.