GAIL Q2 profit surges over two fold YoY to 4,650 cr despite global disruptions
ET BureauRevenue from operations at the state-run gas transporter surged 31% year-on-year to ₹45,924 crore.
The company's board, which met Friday, approved listing of wholly owned subsidiary GAIL Gas, a city gas distributor, by diluting up to 25% of its stake. It also cleared a proposal to transfer six city gas licensed areas to GAIL Gas through a slump sale with effect from January 1, 2027, according to a regulatory filing.
Operating profit from GAIL's natural gas marketing business jumped two-and-a-half times to ₹3,284 crore in the September quarter from ₹1,304 crore a year earlier. Operating profit from gas transmission rose 36% to ₹1,926 crore, while profit from the LPG and other liquid hydrocarbons business nearly quadrupled to ₹442 crore. Losses in the petrochemicals business narrowed to ₹22 crore from ₹299 crore a year earlier.
The Iran war and the near-closure of the Strait of Hormuz have disrupted energy flows from the Gulf. Petronet LNG, a key supplier of Qatari LNG to GAIL, declared force majeure on March 3. Since then, GAIL hasn't received any Qatari volumes from Petronet, the company said.
The improved earnings lifted the stock 1.7% to ₹168 apiece on the BSE, outperforming a 0.42% rise in the benchmark Sensex.