GAIL (India) (GAIL) Q4 03/04 earnings summary

Executive summary

• FY2003-04 turnover was Rs.11,942 crore, up from Rs.11,343 crore; profit after tax rose to Rs.1,869 crore from Rs.1,639 crore.

• Gas transmission remained the dominant business, contributing 72% of turnover; the year also marked the start of LNG imports through Dahej and completion of major pipeline infrastructure.

• Recommended total dividend was 80% of paid-up equity capital, including the 40% interim dividend already paid.

Financial highlights

• Total revenue was Rs.12,225.17 crore versus Rs.11,669.38 crore; profit before tax was Rs.2,814.42 crore versus Rs.2,518.29 crore.

• Net profit was Rs.1,869.34 crore versus Rs.1,639.11 crore; EPS was Rs.22.11 versus Rs.19.38.

• Gross margin was Rs.3,614.10 crore versus Rs.3,348.31 crore; gross sales were Rs.11,295.67 crore versus Rs.10,641.99 crore.

• The Rs.428 crore discount to oil marketing companies for subsidy sharing reduced profit before tax in FY2003-04.

Outlook and guidance

• Strategy focused on securing additional gas supplies, expanding pipeline capacity, developing value-added businesses and pursuing selective overseas investments and acquisitions.

• National Gas Grid planning covered more than 8,000 km across 12 sectors and 14 states; pre-project work and development of pipeline segments were underway.

• Pata petrochemical expansion was expected to lift polymer capacity to 440,000 TPA, with completion targeted for mid-2006.

• Dahej-Hazira-Uran and Dadri-Panipat pipeline projects were in execution; Dadri-Panipat completion was expected in March 2005.