GAIL will raise Rs 500 crore through bonds in December to fund capital expenditure, even as falling margins on petrochemicals and liquid hydrocarbons combined with subsidy burden squeezed the state-run gas utility’s net by 30% in the second quarter. Net profit in the July-September period dropped to Rs 713 crore from Rs 1,023 crore a year ago, GAIL chairman B C Tripathi said on Wednesday. The drop in profit came about despite the fact that income rose to Rs 6,371 crore in the same period from Rs 6,358 crore in the previous corresponding period. “Prices of petrochemicals have fluctuated 10% year-on-year, while those of liquid hydrocarbons fell 40%,’’ Tripathi said, pointing out that lower production and lower price realisation of polymers and liquid hydrocarbons pulled net profit down. He said the company board has cleared the proposal for bonds issue with a 50% greenshoe option that will allow GAIL to raise another Rs 250 crore. He said the pipeline for feeding gas to the Bawana power plant, a Commonwealth Games project, will be ready by November 15 and the link for fuelling Pragati Maidan plant too would be ready in time. Revenue from gas transmission business increased 39% to Rs 843 crore in the quarter under review from Rs 606 crore in the corresponding period the previous year. Revenue from gas trading increased 11% to Rs 4,969 crore. Revenue from petrochemicals business stood at Rs 616 crore against Rs 627 crore, while from LPG and liquid hydrocarbons, the amount was Rs 515 crore in the period under review from Rs 1,065 crore in the corresponding period last year. The company also contributed Rs 459 crore towards LPG and kerosene subsidy in the second quarter compared to Rs 401 crore during the corresponding previous year quarter. For the half-year ended September 30, the company posted a net profit of Rs 1,369 crore, a near-29% dip over the year-ago period. Income from operations at the end of six month period stood at Rs 12,224 crore, while it was at Rs 11,860 crore in the same period last fiscal. During the second quarter of the current fiscal, natural gas sales were 81.05 mcmd (million cubic metres per day), up 3% from 79 mcmd during the corresponding period last year. At the same time, petrochemical production was 102 tmt (thousand metric tonne) against 104 tmt in the corresponding period last year. Polymer sales were 89 tmt, rising 17% from 76 tmt in the corresponding period last year. LPG transmission during the second quarter of the current financial year was 728 tmt, up 12% from 650 tmt during the corresponding period last fiscal.
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