GAIL Q3 net dips 25% as marketing margins drop

New Delhi: State-owned gas utility GAIL India on Monday reported 25 per cent drop in third-quarter net profit due to slump in margins on natural gas marketing as well as LPG and liquid hydrocarbons.

The net profit at Rs 1,250.65 crore, or Rs 2.77 a share, in October-December, was 25.6 per cent lower than Rs 1,681.23 crore, or Rs 3.73 per share, profit earned in the same period a year ago, the company said in regulatory filings.

Revenues from natural gas marketing fell 9.5 per cent to Rs 14,662.67 crore and segment profits dropped 31 per cent to Rs 466.52 crore.

Revenues and profits from its core gas transmission business, however, continued to grow in double digits. Also, the petrochemical business posted a loss of Rs 8.51 crore as compared to a pre-tax profit of Rs 29.71 crore a year ago.

Gas marketing pulled down the company's overall turnover to Rs 17,768.82 crore in the third quarter from Rs 19,788.98 crore in October-December 2018.