Gas distributor GAIL (India) posted a higher-than-expected quarterly profit on Tuesday, thanks to the strength of its natural gas marketing activities.
India’s largest natural gas retailer by market share said its net profit after tax rose 11% to 26.72 billion rupees ($317.8 million) for the September quarter. Analysts, on average, were expecting a profit of Rs 25.99 billion, according to data compiled by LSEG.
Analysts expected GAIL to benefit from a sharp increase in gas transportation and trading volumes, amid a general decline in gas prices in the domestic market.
GAIL supplies approximately 52% of the natural gas sold in the country and primarily serves the power and fertilizer sectors.
The company’s revenue from the gas marketing segment, which focuses on the wholesale and distribution of natural gas and accounts for the majority of its overall revenue, increased 3.7% to 287.47 billion rupees.
Revenue from the natural gas transportation segment, which has a 70 per cent market share in the country, increased by 12.1 per cent to Rs 28.46 billion.
The company’s operating revenue increased 3.5 percent to Rs 329.31 billion.
GAIL shares closed 0.1% higher ahead of the earnings release and are up 21% year to date.
($1 = 84.0860 Indian rupees)
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