GAIL Q3 PAT up 64 per cent; sales up 20 per cent

New Delhi: GAIL (India) Ltd recorded sales (net of excise duty) of Rs3,475 crore in the third quarter of 2004-05, against Rs2,892 crore in the corresponding quarter of 2003-04, registering a 20.16 per cent growth QoQ. The company''s gross margin increased by 50 per cent to Rs1164 crore (Rs777 crore) and the net profit (PAT) clocked a 64 per cent incremental increase at Rs635 crore versus Rs387 crore, owing to better tax planning. This is despite a subsidy burden of Rs363 crore on account of LPG and kerosene for the quarter, sharing the under-recoveries of the PSU oil marketing companies on PDS kerosene and domestic LPG.

The increase in net profit is because of the increase in volume of natural gas transmission owing to R-LNG and LPG transmission, increase in the petrochemical and LPG prices, gas trading activities in R-LNG and the other income of the company in the quarter.

Sales including internal consumption and net of excise duty over the first three quarters amounts to Rs10,003 crore, 15 per cent up from Rs8,686 crore over the corresponding period last year. GAIL''s petrochemical business made a significant contribution to its sales and profit. Petrochemical products accounted for sales of Rs429 crore in Q305, up from Rs360 crore in Q304.

A net capitalisation of Rs516 crore has been made during the period ended December 31, 2004, which mainly includes the Vizag-Secunderabad pipeline (VSPL), the compressor station of the Dahej-Vijaipur pipeline (DVPL), the debottlenecking project at the Pata petrochemical plant and the South Gujarat pipeline.

Financial Highlights:

• Turnover up 20.16 per cent to (Rs3,475 crore v/s Rs2,892 crore).
• Natural gas transmission turnover up 25 per cent (Rs576 crore v/s Rs460 crore).
• LPG transmission up 27 per cent (Rs85 crore v/s Rs67 crore).
• Gas trading up 24 per cent (Rs2,061 crore v/s Rs1,667 crore).
• Petrochemicals up 19 per cent (Rs429 crore v/s Rs360 crore).
• LPG and other liquid hydrocarbons up 3 per cent (Rs496 crore v/s Rs483 crore).
• GAILTEL turnover down (Rs4 crore v/s Rs7 crore) on lower price realisation.
• Gross margin up by 50 per cent (Rs1,164 crore v/s Rs777crore).
• EPS is Rs7.51 against Rs4.57.
• Debt-Equity ratio is healthy at 0.24:1.

Performance Highlights:

• Natural Gas transmission up 17 per cent (73.29 MMSCMD v/s 62.49 MMSCMD).
• LPG Transmission up 29 per cent (603 KT v/s 466 KT).
• Petrochemicals and LPG production same as in Q304.
• Other Liquid Hydrocarbon production up 5 per cent (81 KT v/s 77 KT).