State-owned gas transmission utility Gail India Ltd on Friday posted a 10% year-on-year drop in its net profit for the July-September quarter on the back of higher fuel subsidy outgo as well as fall in gas transmission volumes.
Net profit for the quarter was Rs.985 crore, 10% lower than Rs. 1,094 crore during the same period last year, Gail chairman and managing director BC Tripathi said.
"Our outgo on LPG subsidy increased 39% to Rs.786 crore from Rs.567 crore," Tripathi said.
Also, fall in Reliance Industries' eastern offshore KG-D6 fields led to a drop in volumes the company transported, he added.
Gail registered a turnover of Rs. 11,361 crore in the second quarter, a 17% increase against Rs. 9,699 crore in the corresponding period during the last financial year.
Shares of Gail India closed 0.8% up at Rs. 363.5 on the BSE on Friday.