GAIL Pays Centre Rs.914 Crore as Dividend Tranche

DIPAM Secretary, Tuhin Kanta Pandey announced on Tuesday that the government had received a dividend tranche of 914 crore from state-owned GAIL (India) Ltd.

With this, the government’s total dividend receipts from CPSEs stood at 41,240 crore.

“Government has received around 914 crore from GAIL as dividend tranche,” the DIPAM Secretary tweeted.

GAIL announced a higher quarterly net profit in the three months to December 2021 last week, as increased natural gas prices helped enhance company margins.

The firm stated in a statement that its net profit of 3,287.99 crore, or 7.40 per share, in October-December 2021 was more than double that of 1,487.33 crore, or 3.30 per share, in the same period a year ago.

Profit was 15% higher than in the previous quarter.

While natural gas transmission volumes and profitability remained nearly unchanged, the company’s profit from fuel marketing increased to 1,749.71 crore in the third quarter of the current fiscal year, up from a loss of 73.70 crore the previous year.

Profitability in its LPG and liquid hydrocarbon businesses increased by 200 percent.

“GAIL has exceeded all financial performance metrics in the third quarter of the fiscal year 2021-22 due to higher gas marketing spread, better product prices, and greater operating efficiency in petrochemicals and liquid hydrocarbons,” the statement stated.

Revenue increased by 66% to 26.427.37 crore.

The company earned a net profit of 7,681 crore on revenue of 64,678 crore in the first nine months of the current fiscal year, owing to “increased gas marketing spread, higher product prices, and superior physical performance in the gas marketing and transmission segment.”

GAIL Chairman and Managing Director Manoj Jain stated that this is the company’s highest-ever quarterly revenue from operations and net profit.

“In fact, GAIL has already eclipsed the highest ever PAT obtained in any of the preceding financial years during the 9-month period ended 31st December 2021,” he stated.

GAIL spent 5,034 crore on capital expenditure, primarily on pipelines, petrochemicals, and shares in joint ventures.

During the quarter, GAIL purchased a 26% share in ONGC Tripura Power Company from IL&FS, he said. “The acquisition would be synergistic and allow GAIL to strengthen its position in the country’s North East region.”

He stated that GAIL has launched India’s first-of-its-kind pilot project for incorporating hydrogen into AGL’s City Gas Distribution network in Indore, Madhya Pradesh.

According to him, this project represents a stepping stone on India’s path to a hydrogen-based, carbon-neutral future.