GAIL India Profit Falls More Than Expected on Cooking Gas Loss
GAIL India Ltd. (GAIL), the nation’s biggest natural gas distributor, reported a 7 percent decline in second-quarter profit after it made a loss on cooking gas sales.
Net income dropped to 9.16 billion rupees ($149 million), or 7.22 rupees a share, in the three months ended Sept. 30, compared with 9.85 billion rupees, or 7.77 rupees, a year earlier, the New Delhi-based company said in a statement today. That missed the 9.27 billion-rupee median estimate of 36 analysts surveyed by Bloomberg. Net sales rose 23 percent to 139.4 billion rupees.
GAIL fell 2.4 percent to 343.60 rupees at the close in Mumbai. The shares have dropped 3.7 percent this year, compared with a 6.5 percent gain in the benchmark S&P BSE Sensex. (SENSEX)
The company reported a 2.3 billion-rupee loss before interest and tax on liquefied petroleum gas and liquid hydrocarbon sales in the quarter, compared with a 664.6 million-rupee profit a year earlier. Pretax earnings from gas transmission dropped to 5.8 billion rupees from 6 billion rupees a year earlier.
The company gave 6.99 billion rupees as subsidy on cooking gas sales to state-run refiners including Indian Oil Corp. (IOCL) in the period, compared with 7.86 billion year earlier, according to the statement.
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