The country’s largest gas distributor GAIL (India) Limited’s net profit for the quarter ended March 2023 slumped by 77.5 per cent year-on-year to Rs 603.52 crore due to higher expenses.
For the full year 2022-23, the company’s net profit dipped to Rs 5,302 crore as against Rs 10,364 crore recorded in 2021-22 in FY22.
A sharp jump in expenses has hurt the company’s profit. GAIL’s total expenses surged to Rs 33,284 crore for the quarter ended March 2023 as compared to Rs 23,846 crore recorded in the same period last year.
The company’s revenue from operations jumped to Rs 1.44 lakh crore in 2022-23 from Rs 91,646 crore recorded in 2021-22.
Sandeep Kumar Gupta, Chairman & Managing Director, GAIL, said the capital expenditure (capex) of the company rose to Rs 9,100 crore during FY 2022-23. This is the highest ever capex by GAIL.
The company’s investments during the year were mainly on pipelines, petrochemicals and investments in equity and joint ventures. The actual capex during the year was 15 per cent higher than the official target of Rs 7,918 crore.
"We have successfully implemented Unified Tariff w.e.f. 1st April 2023 which will help India achieve the One Nation One Grid One tariff model and also boost the gas consumption in distant areas," Gupta said.