GAIL (India) (GAIL) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 net profit rose to Rs.1,185.84 crore from Rs.1,126.17 crore; turnover including internal consumption and stock adjustments reached Rs.10,553 crore.

• Operations expanded in LPG, propane/pentane and polymers, while gas sales volume eased to 20.676 BCM from 20.946 BCM.

• Strategy centered on securing new gas supplies, expanding markets and pipelines, and preparing for increased competition and sector deregulation.

Financial highlights

• Turnover including internal consumption and stock adjustments was Rs.10,553 crore versus Rs.10,087 crore; total revenue was Rs.10,763 crore versus Rs.10,229 crore.

• Sales were Rs.9,567.50 crore versus Rs.9,197.44 crore; C&AG review cited 4.02% growth, while PAT increased 5.30% to Rs.1,185.83 crore.

• PBT was Rs.1,801.90 crore versus Rs.1,552.21 crore; gross margin reached Rs.2,622 crore versus Rs.2,350 crore.

• Current tax provision was Rs.466.70 crore and deferred tax provision Rs.149.36 crore; proposed dividend was Rs.380.54 crore, including Rs.34.50 crore dividend tax.

Outlook and guidance

• Gas availability was expected to remain constrained until LNG supplies begin from 2004; future growth depended on ONGC and private producers increasing output from existing fields or new discoveries.

• The 670 km Mangalore-Coimbatore LPG pipeline was planned at 1.1 MMTPA capacity and estimated cost of Rs.600 crore.

• Swing Plant debottlenecking was expected to raise polyethylene capacity from 160,000 to 210,000 TPA at an estimated Rs.76 crore; HDPE expansion to 120,000 TPA was under consideration.

• Petrochemical expansion to ~550,000 TPA ethylene and a matching polymer unit were under study.