State-owned gas utility GAIL India Ltd today reported 29 per cent drop in June quarter net profit on lower margins from natural gas trading. Net profit in April-June quarter at Rs 808.17 crore was 28.7 per cent lower than Rs 1,133.78 crore in the same period a year ago, the company said in filings to stock exchanges. The net profit fell despite its outgo on fuel subisidy remaining unchanged at Rs 700 crore.
Sales rose 16 per cent to Rs 12,855.64 crore. While profit from natural gas transmission was marginally down to Rs 553.83 crore, the same from natural gas trading fell to Rs 302.53 crore from Rs 495.64 crore in Q1 last fiscal. Also, LPG and liquid hydrocarbons segment recorded a loss before interest and tax of Rs 10.93 crore as against a profit before interest and tax of Rs 437.27 crore in the same period a year ago.