Amid surging profits of state-owned oil marketing firms — Indian Oil, Bharat Petroleum and Hindustan Petroleum — during the fourth quarter of 2011-12, public sector gas major GAIL (India) Limited on Wednesday announced a 38% year-on-year drop in net profit at Rs. 483 crore in the fourth quarter against Rs. 783 crore a year ago.
GAIL along with ONGC and OIL sells subsidised fuel to refuneries. The company attributed the fall in net profit to higher LPG subsidy contribution during 2011-12.
“The decrease in net profit during the fourth quarter of the current fiscal year was mainly due to higher LPG subsidy contribution by the company,” said BC Tripathi, CMD, GAIL.
Even net profit for full fiscal year 2011-12 increased by only 3% at Rs. 3,654 crore against Rs. 3,561 crore in the previous year.
The company provided discounts of Rs. 1,398 crore during the quarter, compared to Rs. 901 crore in the same period a year earlier. For the full year 2011-12, the subsidy outgo stood at Rs. 3,183 crore against Rs. 2,111 crore a year ago.