GAIL sets new records by reporting the highest ever quarterly revenue and PAT

 The company has created new records by generating the highest ever quarterly revenue.

GAIL (India) Limited, India’s leading natural gas company, reported its Q3FY22 results yesterday. The company reported its highest-ever quarterly top-line and bottom-line revenue.

Let’s take a look at the numbers 

In Q3FY22, on a consolidated basis, the company’s net revenue has gone up by 66% YoY to Rs 26175.60 crore. This growth was driven by improved gas marketing spread, better product prices and improved operating efficiency in petrochemicals and liquid hydrocarbons.

Despite a sharp 229% rise in the cost of raw materials, the PBIDT (ex OI) went up by a stellar 106% YoY to Rs 4626.78 crore while its corresponding margin expanded by 339 bps to 17.68%.

Similarly, despite a 127% increase in the tax expenses, the net profit for the quarter jumped by 138.19% YoY to Rs 3374.35 crore, while the corresponding margin expanded by 385 bps to 12.89%. Apart from improved gas marketing spread and better product prices, this surge was driven by better physical performance in the gas marketing and transmission segment.

During the quarter, the company incurred a capex of Rs 5034 crore mainly on pipelines, petrochemicals, equity to joint ventures (JVs), etc. It also acquired a 26% equity stake of Infrastructure Leasing and Financial Services (IL&FS) group in ONGC Tripura Power Company Limited (OTPC). This acquisition would be synergetic and enable the company to gain a strong foothold in the North East region of the country.

It also commissioned the country's first-of-its-kind pilot project for mixing hydrogen into the City Gas Distribution network of AGL at Indore, Madhya Pradesh. This development marks the first step in India's journey towards a hydrogen-based and carbon-neutral future.

At 1.51 pm, the share price of GAIL (India) Limited was trading at Rs 148.6, an increase of 1.16% over the previous day’s closing price of Rs 146.90 on BSE.