GAIL Q3 results: Net profit rises 28% to ₹4,084 crore, revenue at ₹36,937 crore

GAIL (India), on January 30, announced a consolidated net profit of ₹4,084 crore for the third quarter of the 2024-25 financial year, marking a 28 per cent rise from the previous year.

The state-owned gas distribution company's net profit stood at ₹3,193 crore during the same period last year.

Revenue from operations saw a 6.23 per cent increase in the quarter, reaching ₹36,937 crore, up from ₹34,768 crore in the previous year.

The company's board of directors announced an interim dividend of ₹6.50 per equity share, totaling ₹4,273.81 crore.

However, the company's operating performance was below expectations. EBITDA dropped by 24.2 per cent quarter-on-quarter, falling to ₹2,837.8 crore from ₹3,745 crore in the September quarter.

During the quarter, the average natural gas transmission volume was 125.93 MMSCMD, compared to 130.63 MMSCMD in Q2 FY25. Gas marketing volume reached 103.46 MMSCMD, up from 96.60 MMSCMD in the previous quarter. LHC sales totaled 282 TMT, rising from 253 TMT, while polymer sales stood at 221 TMT, slightly lower than 226 TMT in the prior quarter.

GAIL Q3 income and EBITDA

GAIL reported an exceptional income of $285 million, or ₹2,440 crore, for the quarter from SEFE Marketing & Trading Singapore Pte. Ltd. as a settlement for the withdrawal of arbitration proceedings, according to Sandeep Kumar Gupta, Chairman and Managing Director.

Margins decreased to 8.1 per cent from 11.4 per cent in the prior quarter, falling short of the projected 11.2 per cent.

"Consequent upon settlement agreement dated January 15, 2025 entered with one of the LNG supplier, which includes payment of USD 285 million by LNG supplier to the company towards settlement of litigation for non-supply of LNG cargoes during FY 2022-23, the company has recognised ₹2,440.03 crore (USD 285 million) as an exceptional income during the quarter and nine months ended December 31, 2024," GAIL said.

Although GAIL missed expectations for EBITDA and margins, its stock stayed in positive territory. At 2:46 pm on Wednesday, the company's shares were trading at ₹169.70 on the BSE, up by 2.69 per cent.