GAIL Q1 net profit surges 77% on higher gas marketing margins

GAIL Q1 2024 net profit: GAIL (India) Ltd, the nation's leading gas transportation and distribution firm, announced a significant 77.5 per cent increase in its net profit for the June quarter, driven by a doubling of earnings from its gas marketing business.

The company's consolidated net profit for April-June stood at Rs 3,183.35 crore, a notable rise from Rs 1,792.99 crore in the same period last year, according to a filing with the stock exchange.

Earnings from GAIL's gas transportation business increased by 40 per cent, while margins from natural gas marketing doubled. Pre-tax earnings from natural gas transmission rose to Rs 1,446.87 crore from Rs 1,028.33 crore in the previous year’s corresponding quarter. Similarly, natural gas marketing earnings soared to Rs 2,036.13 crore from Rs 1,045.87 crore.

Revenue from operations also saw an uptick, reaching Rs 33,692 crore in Q1 FY25 compared to Rs 32,227 crore in Q1 FY24.

In a subsequent statement, Sandeep Kumar Gupta, Chairman & Managing Director of GAIL, highlighted the company’s capital expenditures: "GAIL has incurred a capex of about Rs 1,659 crore during the current quarter, primarily on pipelines, petrochemicals, and equity to joint ventures, which is about 21 per cent of our annual target of Rs 8,044 crore."

Gupta also announced that GAIL has accelerated its net zero carbon target for scope-1 and scope-2 emissions, aiming to achieve this goal by 2035, five years ahead of the earlier target of 2040.

(With PTI inputs.)