GAIL India Q3 net profit rises 10% to Rs 664.26 crore

GAIL India Ltd, the country's biggest natural gas supplier, on Tuesday reported a 10% rise in its December quarter net profit on spike in margins and exemption from payment of fuel subsidy.

Net profit of Rs 664.26 crore, or Rs 5.24 per share, in October-December 2015 was 9.96% higher than Rs 604.08 crore, or Rs 4.76 a share, in the same period a year ago, the company said in a regulatory filing.

Turnover fell 10% to Rs 13,451.58 crore in the third quarter on lower gas volumes transported through the company's pipelines. Lower gas price saw its revenue from marketing of natural gas shrink 11% to Rs 11,686.53 crore in the third quarter ended December 31 but its profit from business rose almost ten times - from Rs 51.14 crore in October-December 2014 to Rs 483.42 crore in current fiscal.

Also, the company was not required to pay any fuel subsidy in the quarter as opposed to Rs 500 crore payout in the same period a year ago. GAIL as well as upstream oil and gas producers ONGC and Oil India have to make good a portion of losses retailers incur on selling domestic cooking gas (LPG) and kerosene at government controlled rates.

The company's earnings from gas transmission business fell 16% to Rs 427.69 crore on lower volumes of gas transported while it posted a loss of Rs 160.56 crore on petrochemical sales. GAIL also said its Board of Directors approved payment of interim dividend of 25% (Rs 2.50 per equity share) for the 2015-16 fiscal.