Maharatna PSU Tanks As Q3 PAT Slumps 93%, EBIT Losses in Multiple Biz

By Malvika Gurung

Investing.com -- Shares of the country’s largest natural gas company GAIL (NS: GAIL ) tanked 7.3% on Monday’s intraday and closed the session 4.24% lower at Rs 94.95 apiece, following a significant fall in its bottomline figure during the December ended quarter.

The Maharatna company released its earnings for the third quarter of FY23, posting a 92.5% YoY plunge and an 84% sequential slump in its standalone net profit at Rs 245.73 crore.

The consolidated net profit in the quarter was slashed by 89.5% YoY and 69.5% QoQ to Rs 397.59 crore, led by lower gas sales due to supply disruptions, as well as the company’s petrochemical and natural gas marketing businesses suffering losses during the quarter.

The central public sector undertaking’s (PSU) consolidated revenue from operations surged 37.3% YoY to Rs 35,939.96 crore but slipped 7.2% sequentially.

Its EBITDA in the quarter tumbled 85% QoQ to Rs 260 crore from Rs 1,764 crore in the preceding quarter, while the operating profit margins crashed to 0.7% in Q3 FY23 from 4.6% in Q2 FY23.

The PSU’s LPG & Liquid Hydrocarbons business posted an EBIT loss of Rs 29.17 crore in the December 2022 quarter from profits of 854.98 in the year-ago period and Rs 500.22 crore in the preceding quarter, while the Petrochemicals business recorded a loss of Rs 318.85 crore from a profit of Rs 364.63 in Q3 FY22.

The gas company’s Natural Gas Marketing segment posted an EBIT loss of Rs 56.48 crore in Q3 FY23 from profits of Rs 1,965.49 crore in Q3 FY22 and Rs 309.16 crore in Q2 FY23.