GAIL (India) (GAIL) Q4 97/98 earnings summary

Executive summary

• FY1997-98 revenue rose to Rs. 5,453.39 crore from Rs. 4,322.86 crore; profit before tax reached Rs. 1,390.03 crore and profit after tax Rs. 1,020.31 crore.

• Navratna status brought greater autonomy; operations expanded, while major petrochemical and LPG projects neared commissioning.

Financial highlights

• Sales were Rs. 5,453.39 crore vs Rs. 4,322.86 crore; gross profit was Rs. 1,703 crore vs Rs. 1,124 crore.

• Profit before tax was Rs. 1,390.03 crore vs Rs. 828.79 crore; profit after tax was Rs. 1,020.31 crore vs Rs. 619.55 crore.

• Proposed dividend was 20%, excluding dividend tax; the five-year profile records dividend of Rs. 169.13 crore for FY1997-98.

Outlook and guidance

• Pata gas cracker commissioning was expected in Q3 1998, with downstream units shortly after; the complex is designed for 300,000 tonnes of ethylene annually.

• Lakwa and Usar LPG plants were targeted for commissioning by October 1998; Auraiya was planned for June 2000, adding 258,000 TPA of LPG and 71,000 TPA of propane.

• LPG capacity was expected to double from 0.6 million tonnes of liquid hydrocarbon production within 2–3 years as two plants were developed.

• Medium- and long-term supply plans included gas imports, CBM opportunities and regional pipeline imports; domestic gas production was described as peaking.