GAIL India posts Q2 profit beat on gas transmission volume strength

Gail India Ltd?s logo is seen at Gastech 2023 in Singapore September 7, 2023. REUTERS/Florence Tan/ File Photo Acquire Licensing Rights
BENGALURU, Oct 31 (Reuters) - India's largest gas distributor GAIL (India) (GAIL.NS) on Tuesday posted a bigger-than-expected rise in quarterly profit, buoyed by a boost in its gas transmission volume.
The company's net profit after tax rose more than 56% year-on-year to 24.05 billion rupees ($288.99 million) in the three months ending Sept. 30, beating analysts' average estimate of 18 billion rupees, as per LSEG data.
"During the quarter the company has performed well, specially on the strength in gas transmission segment which will continue to perform better," Chairman Sandeep Kumar Gupta said in a statement.
Natural gas transmission volume stood at 120.31 million metric standard cubic metre per day, 3.4% higher than last quarter.
The state-run company's revenue from natural gas transmission segment rose 56% year-on-year.
Performance, however, was constrained due to lower realisation in polymers and liquefied natural gas (LNG) which are expected to improve going forward, Gupta added.
India saw a record power demand in August due to unusually dry weather and a sharp decline in hydro and wind energy output, resulting in the country's widest electricity shortage in 16 months.
To address the surging power demand, GAIL last month said it will tap spot LNG markets.
Last year, GAIL had to cut gas sales to fertiliser and industrial clients after supplies under its long-term deal with the German unit of Russia's Gazprom were hit when it was taken over by Berlin, which diverted volumes to its own market.
GAIL shares, which have gained nearly a quarter of their value so far this year, rose more than 2% after the results.
($1 = 83.2210 Indian rupees)
Reporting by Ashish Chandra in Bengaluru; Editing by Sohini Goswami
Our Standards: The Thomson Reuters Trust Principles.
How do futures traders review their trading?
Futures trading is a form of financial speculation that involves buying and selling contracts that represent the future delivery of an asset, such as a commodity, a currency, an index, or a stock. Futures traders aim to profit from the price movements of the underlying asset, without actually owning
Futures night trading hours
Futures are contracts that obligate the buyer or seller to exchange an asset or commodity at a specified future date and price. They are used for hedging, speculation, and arbitrage purposes in the global market. Futures can be based on various underlying assets, such as currencies, commodities, ind
How can futures efficiently increase the success rate of intraday trading?
Intraday trading is a form of trading that involves buying and selling securities within the same trading day, without holding any positions overnight. Intraday traders aim to profit from the short-term price fluctuations of the market, using various tools and strategies to analyze and execute trade
What are the factors that can affect how much money can be made in futures?
Futures trading is a form of financial speculation that involves buying and selling contracts that represent the future delivery of an asset, such as a commodity, a currency, an index, or a stock. Futures traders aim to profit from the price movements of the underlying asset, without actually owning