GAIL (India) (GAIL) Q4 98/99 earnings summary

Executive summary

• FY1998-99 total revenue reached Rs. 6,270 crore and profit after tax Rs. 1,060 crore; four major projects were commissioned during the year.

• Navratna Board became operational following submission of a vision statement and induction of four non-official part-time directors, with enhanced financial and operational autonomy.

Financial highlights

• Sales were Rs. 6,193 crore vs Rs. 5,453 crore; total revenue was Rs. 6,270 crore vs Rs. 5,509 crore, and operating profit Rs. 1,061 crore vs Rs. 784 crore.

• Profit after tax was Rs. 1,060 crore vs Rs. 1,020 crore; interest was Rs. 92 crore vs Rs. 65 crore, depreciation/write-off Rs. 339 crore vs Rs. 248 crore, and tax provision Rs. 175 crore vs Rs. 370 crore.

• Non-recurring income was Rs. 174 crore vs Rs. 606 crore; proposed dividend, including dividend tax, was Rs. 329 crore vs Rs. 186 crore.

Outlook and guidance

• Priorities include consolidating core operations, securing additional domestic and imported gas, expanding pipeline and processing capacity, and pursuing synergetic diversification.

• Kandla–Loni LPG pipeline, approved at Rs. 1,230 crore, was scheduled for commissioning by April 2001; financial commitment was ~Rs. 300 crore.

• Auraiya LPG plant was expected by June 2000, with 258,000 TPA capacity; Rs. 322 crore committed against sanctioned cost of Rs. 439 crore.

• Gandhar gas-processing plant, approved at Rs. 361 crore, was scheduled for January 2002; planned output includes 207,000 TPA LPG, 17,400 TPA pentane and 25,500 TPA SBP solvent.

• LNG sourcing and pipeline expansion options included Dahej imports, a possible parallel Hazira–Vijaipur line, and discussions with Petronet LNG, TOTAL and Tata Electric Company.