GAIl India ltd on Tuesday reported a 10 per cent rise in its December quarter net profit on spike in margins and exemption from payment of fuel subsidy.
Net profit of Rs664.26 crore, or Rs5.24 per share, in October-December 2015 was 9.96 per cent higher than Rs604.08 crore, or Rs4.76 a share, in the same period a year ago, the company said in a regulatory filing.
Turnover fell 10 per cent to Rs13,451.58 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 per cent to Rs11,686.53 crore in the third quarter ended December 31 but its profit from business rose almost ten times - from Rs51.14 crore in October-December 2014 to Rs483.42 crore in current fiscal.
Also, the company was not required to pay any fuel subsidy in the quarter as opposed to Rs500 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.