State-run gas major GAIL India on Monday reported a net profit of Rs 2,804 crore ($585 million) for 2008-09 as against Rs 2,601 crore recorded the year before, an increase of 8 per cent.
In a regulatory statement, the company said its turnover during the period increased 32 per cent to Rs 23,776 crore from Rs 18,008 crore in 2007-08.
According to GAIL, this rise occurred despite an increase in the subsidy burden for liquefied natural gas (LPG) to Rs 1,781 crore.
If there had been no burden, the net profit would have increased by 14 per cent, the company said.
However, the fourth quarter results show a dip in net profit to Rs 630 crore from to Rs 720 crore in the like period of the previous year.
Earlier in the day, GAIL managing director UD Choubey told reporters in New Delhi that the company would make a joint bid with Indian Oil Corp, another state-run firm, for developing Nigeria's gas infrastructure.
"Yes, we will bid along with IOC," Choubey said.
GAIL director (finance) RK Goel said the company's profit for 2009-10 would likely exceed Rs 3,000 crore.
He noted that if oil prices remained at the present level, the subsidy burden could come down.
GAIL plans to invest Rs 5,580 crore this fiscal, out of which Rs 4,020 crore will be spent on pipeline projects.
The company has kept aside Rs 650 crore for exploring new gas sources.
Goel added that there was no plan to dilute GAIL's equity in the Dabhol LNG terminal, which may start operations in September.
Instead, the company will raise Rs 500 crore through a local bond issue in December.