New Delhi, Oct. 25: GAIL (India) Ltd has reported a 7 per cent drop in net profit at Rs 916 crore in the second quarter ended September against Rs 985 crore a year ago because of lower supplies.
“The realisation from LPG and petrochemical sales was higher. But we could not monetise it into profit after tax because of lower supply of gas for our LPG plant and also less gas available for transmission,” GAIL chairman B.C. Tripathi told reporters.
The state-run gas utility’s net sales increased 22.7 per cent year-on-year to Rs 13,945 crore.
Tripathi also said the company would not have to share oil subsidy in the third and fourth quarter of 2013-14.
“The government has communicated to us that our subsidy burden is capped at Rs 1,400 crore for the current financial year. We have already shared that, which means we will not have to share subsidy in the third and fourth quarters,” he said.
In 2012-13, GAIL forked out Rs 2,687 crore in oil subsidy.
Tripathi, however, added he was not aware of a similar cap for ONGC and Oil India.
GAIL has sold more than a fourth of its 4.6 per cent stake in Hong Kong-listed city gas distribution firm China Gas Holdings for Rs 385 crore.
GAIL, which made a strategic investment of Rs 137 crore by acquiring 210 million shares of China Gas in 2005, has sold 60 million shares.
“We had acquired the shares at Hong Kong (HK) $1.1 and we sold the shares at HK $8.2,” he said.
The company plans to keep a small strategic interest that will help it to retain its board position in China Gas.