GAIL India Ltd.’s quarterly profit fell, missing estimates, as expenses rose.
Net profit of the gas distributor fell 19.8% over the preceding quarter to Rs 1,529.9 crore in the three months ended June, according to its exchange filing. That compares with the Rs 1,699.6-crore consensus estimate of analysts tracked by Bloomberg.
Q1 FY22 Highlights (QoQ)
Revenue rose 11.8% to Rs 17,383.9 crore, against the estimated Rs 16,189.1 crore.
Operating profit declined 6% to Rs 2,411.3 crore, compared with the Rs 2,585-crore forecast.
Operating margin contracted to 13.9% from 16.5%. Analysts had pegged the metric at 15.9%.
Other income declined 65.2% to Rs 197.6 crore.
Total expenditure (excluding excise duty) increased 15% to Rs 15,527.8 crore.
GAIL’s petrochemical spreads softened, and petrochemical volumes declined 38.6% sequentially, owing to a planned shutdown in April and May. Its transmission volumes fell 3.1% over the preceding three months. Its natural gas marketing and liquefied petroleum gas volumes rose 19.2% and 17.3% sequentially.
Key petrochemical cracks eased from their multi-year highs during the three months through June. Polyethylene, polypropylene and polyvinyl chloride naphtha spreads rose between 14% and 75% year-on-year, compared with a 52-108% jump in the preceding quarter.
Brent crude oil prices averaged at $69.1 a barrel in the reported period, up 13% over the preceding three months. LNG imports declined 6.8% quarter-on-quarter to 7,633 million metric standard cubic meters. That, too, when gas consumption in Asia’s third-largest economy dipped 0.4% to 15,590 mmscm, data released by the Petroleum Planning & Analysis Cell showed.
Shares of GAIL were trading 0.56% higher after the results were announced compared with a 0.17% gain in the benchmark Nifty 50.