The state-owned gas distributor GAIL in India reported more than a twofold increase in quarterly profit, which reached 4,650 crore rupees, driven by significant growth in its natural gas marketing business.
GAIL, the largest natural gas distributor in India by market share, stated that its net profit after tax for the quarter ending September 30 was 4,650 crore rupees (US$489.3 million), compared to 2,217 crore rupees the previous year.
Prior to the earnings announcement, analysts at Jefferies noted that gas consumption in India had recovered to pre-Middle East conflict levels by September.
GAIL Chairman Dipak Gupta mentioned in September that India was initially forced to restrict gas consumption but subsequently resumed supplies at nearly 90%–95%, increasing its capacity to procure LNG from other sources.
The company also announced preliminary approval for listing its subsidiary, GAIL Gas, via an IPO, which could potentially involve selling up to 25% of shares, subject to final board approval.
The gas marketing segment, which is GAIL's primary revenue source through wholesale trading and distribution of natural gas, showed growth of over 31%, reaching 41,226 crore rupees. Furthermore, the petrochemical segment's revenue increased by almost 26%, and the natural gas transportation segment grew by 21%.
GAIL's total operating revenue exceeded 30%, amounting to 45,924 crore rupees, while expenses rose by more than 23%.