NEW DELHI -- State-run natural gas company GAIL (India) has reported a 51% year-on-year jump in its net profit for the January-March quarter, lifted by higher transmission volumes.
For the fourth quarter of the financial year ended March 31, the company's net profit rose to 7.7 billion rupees ($114.4 million) compared with 5.1 billion rupees in the year-ago period. Its net profit rose despite an 18.3% drop in revenue on the year to 116.27 billion rupees.
"The increase in net profit during the fourth quarter was mainly due to an increase in natural gas sales and transmission volumes," the company said in a stock exchange filing in Mumbai on Wednesday.
For the full year, GAIL's sales reached about 516 billion rupees, versus 565.7 billion rupees for the previous year. Its full-year net profit fell to about 23 billion rupees from 30 billion rupees in the 2014-2015 fiscal year.
The company said one of the main reasons for the decline was "lower price realization of petrochemicals and liquid hydrocarbons." Its results came in after the stock market closed on Wednesday, when the shares closed at 381.30 rupees.
In response to the robust earnings, the stock opened 1.05% higher Thursday, at 385.30 rupees. Around 3 p.m. local time, Gail was trading at 381.95 rupees on the BSE, formerly the Bombay Stock Exchange.