On the back of higher revenues from gas trading, state-owned gas major GAIL (India) Ltd on Friday announced an 18% year-on-year increase in net profit to Rs. 1,285 crore for the quarter ended December, compared to Rs. 1,091.4 crore in the year-ago period.
The company’s chairman and managing
director BC Tripathi said profit was higher despite a sharp increase in the firm’s fuel subsidy outgo to Rs. 614 crore from Rs. 536.12 crore a year ago.
Upstream firms like ONGC and GAIL make good a portion of losses that fuel retailers suffer on selling diesel, domestic LPG and kerosene at government controlled rates.
Tripathi said that the company has till date paid a subsidy of R2,100 crore during the current fiscal.
Total income increased 11.9% year-on-year to Rs. 12,658.4 crore in the third quarter of current fiscal from Rs. 11,315.5 crore in the year-ago period.
The GAIL board approved the payment of an interim dividend of 40% (R4 per equity share) for the 2012-13 fiscal, which will end in March.