Owing to impairment charge of Rs 783crore for Ratnagiri Gas and Power (RGPPL), state-owned GAIL (India) on Monday announced mixed results. While profit after tax (PAT) for 2016-17 rose 57% to Rs 3,503crore from Rs 2,226crore a year ago, PAT in the fourth quarter of 2016-17 fell to Rs 260crore compared with Rs 832crore achieved in the same quarter last year. GAIL holds 25.51% in RGPPL, and other stakeholders include NTPC and private investors.
According to a company release, profit rose mainly due to a turnaround in the petrochemical business, apart from profit in gas transmission business and partial sale of stake in Mahanagar Gas, which offset lower realisations in polymer and liquid hydrocarbons.
The board of the company, which met on Monday, proposed a final dividend of Rs 2.70 per share taking the total dividend for the year to Rs 1,535crore, an increase of 120% compared with 2015-16. The earnings per share are up 57% to Rs 20.71 per share on increased paid-up equity.
The company had issued one bonus share for every three equity shares held last year. In terms of production volumes, GAIL’s petrochemicals sale increased by 73%, natural gas marketing and transmission volumes were up 10% and 9%, respectively, and liquefied petroleum gas transmission volume was up 19% whereas liquid hydrocarbon sales fell 2%.