GAIL (India) (GAIL) Q4 02/03 earnings summary

Executive summary

• FY2002-03 delivered higher physical output and financial results; net profit rose to Rs.1,639 crore from Rs.1,186 crore, while gas sales volume reached 21.129 BCM.

• Strategy focused on expanding across the gas value chain, developing a National Gas Grid, securing new gas sources and pursuing international and petrochemical opportunities.

Financial highlights

• Turnover including internal consumption was Rs.11,775 crore vs Rs.10,553 crore YoY; total revenue was Rs.12,094 crore vs Rs.10,763 crore.

• Gross margin increased to Rs.3,348 crore from Rs.2,622 crore; PBT was Rs.2,518 crore vs Rs.1,802 crore and PAT was Rs.1,639 crore vs Rs.1,186 crore.

• Sales were Rs.10,642 crore vs Rs.9,568 crore; EPS rose to Rs.19.38 from Rs.14.02.

• Production increased YoY: LPG 1.114 million tonnes, polymers 291,829 tonnes and propane/pentane/SBP solvent 188,162 tonnes.

Outlook and guidance

• Exploration spending was planned at Rs.150 crore for FY2003-04 across 10 exploration blocks; Rs.31 crore was spent on exploration programmes in FY2002-03.

• Dahej–Vijaipur pipeline completion was scheduled in phases from December 2003; South Gujarat pipeline was targeted for October 2004, with city-gas projects scheduled in phases from April 2005.

• Priorities included National Gas Grid development, strategic domestic and cross-border gas sourcing, petrochemicals expansion, retail CNG/Auto LPG and global gas-sector projects.