GAIL Q1FY23 Results: Company's net profit jumps 51% on marketing margins

GAIL Q1FY23 Results, GAIL share price: GAIL (India) Ltd, the nation's largest gas utility, on Thursday reported a 51 per cent jump in its June quarter net profit on the back of bumper margins from gas marketing.

GAIL posted a consolidated net profit of Rs 3,250.95 crore, or Rs 7.34 per share, in April-June compared to Rs 2,157.15 crore, or Rs 4.81 a share, net profit in the same period a year back, the company said in a regulatory filing.

Sequentially, the profit was lower than Rs 3,473.77 crore net earnings in the January-March quarter.

The rise in year-on-year profit was on the back of bumper earnings from natural gas marketing.

The firm reported a pre-tax profit of Rs 2,317.91 crore from natural gas marketing in the first quarter of the current fiscal, as compared to Rs 449.84 crore pre-tax profit a year back and Rs 1,976.23 crore in the preceding quarter.

The margin on gas marketing made up for a 12.5 per cent decline in earnings from the gas transportation business and a 74 per cent drop in petrochemicals earnings.

Turnover more than doubled to Rs 38,033.30 crore in the April-June quarter, from Rs 17,702.43 crore a year back, the filing showed.

GAIL said the earnings per share have been adjusted on account of a buyback of 1.28 per cent shares by the company.

Last month, the board of directors of the company recommended the issue of one bonus share for two existing equity shares.

GAIL share price witnessed a spike immediately after the earnings announcement, hitting a day’s high level of Rs 142.15 per share.

The stock at around 02:45 PM is trading over 1 per cent lower to Rs 138.95 per share as against 0.38 per cent decline in the S&P BSE Sensex.