GAIL March Q net dips 14% to Rs 783 cr

State-owned GAIL India reported a 14 per cent drop in its net profit for the quarter ended March 31.

State-owned GAIL India reported a 14 per cent drop in its net profit for the quarter ended March 31,the first decline in six quarters,on being forced to pay higher fuel subsidy.

GAIL net profit dipped to Rs 783 crore in the January-March quarter from Rs 911 crore in the same period an year ago,company Chairman and Managing Director B C Tripathi told reporters here.

“Our subsidy outgo went up from Rs 330 crore (in Q4 of FY10) to Rs 902 crore in Q4 of 2010-11 fiscal,” he said. “This is the highest ever subsidy paid by GAIL in any quarter.”

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Upstream firms like ONGC and GAIL in 2010-11 have been asked to meet 38.8 per cent of the total revenue that fuel retailers lost on selling diesel,domestic LPG and kerosene at government controlled rates. This was higher than one-third subsidy they provided in the previous fiscal.

Tripathi said GAIL net profit was up 13 per cent in 2010-11 to 3,541 crore. “If our subsidy burden would have remained at previous year (2009-10) levels,net profit would have been up 25 per cent or another Rs 500 crore,he said.

In 2010-11,GAIL’s total subsidy payout was Rs 2,111 crore as opposed to Rs 1,327 crore in the previous year.

GAIL revenues were up 36 per cent to Rs 8,894 crore in the January-March quarter.

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Turnover (net of excise duty) in the year 2010-11 increased by 30 per cent to Rs 32,459.

Tripathi said the Board of Directors has recommended payment of total dividend at the rate of 75 per cent.