GAIL shares rise as Q2 net profit grows 8 per cent
GAIL (India) reported a net profit of Rs 4,650 crore for the second quarter alongside a 17.8 per cent rise in revenue.
GAIL (India) shares increased nearly 4 per cent on Monday to reach a high of Rs 174.80 on the NSE. According to the Economic Times, the company reported an 8.3 per cent rise in Q2 net profit to Rs 4,650 crore and a 17.8 per cent year-on-year growth in revenue from operations to Rs 45,895 crore.
The company's operating profit from natural gas marketing rose to Rs 3,284 crore from Rs 1,304 crore in the previous year. Profit from the LPG and other liquid hydrocarbons segment increased almost four times to reach Rs 442 crore, while gas transmission operating profit grew 36 per cent to Rs 1,926 crore.
GAIL stated that the quarter showed resilience in natural gas marketing and transmission performance. The company noted that it saw robust volumes across all major segments despite geopolitical headwinds. Losses in the petrochemicals business were reduced to Rs 22 crore from Rs 299 crore in the prior year.
The board has given in-principle approval for an initial public offering (IPO) of its subsidiary, GAIL Gas Ltd. This move may involve the dilution of up to 25 per cent of GAIL's equity holding in the subsidiary. The company will submit a final proposal once recommendations are received from book-running lead managers.
Additionally, the board approved transferring six city gas distribution areas to GAIL Gas Ltd through a slump sale. The areas include Varanasi, Patna, Ranchi, East Singhbhum, Cuttack and Khordha, with an effective transfer date of January 1, 2027.