Press Releases
[New Delhi, 28th April, 2006]

GAIL PAT up 18 % at Rs. 2,310 crore
Turnover up 17% at Rs. 14,460 crore

New Delhi, April 28, 2006. GAIL (India) Limited today came out with provisional financial results for the year 2005-06, showing yet another year of impressive performance with a 18 percent jump in the net profit and a 17 per cent jump in the turnover for the financial year 2005-06. According to the provisional figures, the Profit After Tax (PAT) during the year 2005-06 is Rs. 2,310 crore against PAT of Rs. 1,954 crore in the previous financial year. The company's turnover during the year 2005-06 increased to Rs.14,460 crore as against Rs. 12,412 crore in the previous financial year. The company's Gross Margins during the year 2005-06 were Rs. 3,953 crore.

This increase of the profits has been achieved despite the fact that gas price for internal consumption has gone up from Rs. 2,850 to Rs. 6,740 per 1000 SCM with effect from 1st July 2005. Also, GAIL had to bear the subsidy burden of Rs. 1,064 crore towards the under recoveries on Domestic LPG and PDS Kerosene as per the Government of India directives.

Natural gas transmission continues to be the core business area of GAIL showing a continuous growth. During the financial year 2005-06, revenues from Natural Gas transmission increased by 12 percent to Rs. 2,034 crore as compared to Rs. 1,810 crore during the previous financial year. The revenues from gas trading during the financial year 2005-06 increased by 18 percent to Rs. 8,401 crore as against Rs. 7,129 crore in the previous financial year. The revenues from LPG and other liquid hydrocarbons increased by 31 per cent to Rs. 2,062 crore in the financial year 2005-06 as compared to Rs. 1,578 crore during the previous financial year, mainly because of the increase in the prices.

The natural gas transmission increased 10 percent during financial year 2005-06 to 78.87 MMSCMD as against 71.56 MMSCMD during the previous financial year.

During the fourth quarter of the financial year 2005-06, the company's turnover increased by 11 per cent to Rs. 3,660 crore as against a turnover of Rs. 3,285 crore in the corresponding quarter of the previous financial year. The company's PAT during the fourth quarter of the financial year 2005-06 was Rs. 409 crore, a decrease of 22 per cent over the PAT of Rs. 524 crore during the corresponding quarter in the previous financial year.

During the fourth quarter of the financial year 2005-06, gas transmission increased by 8 percent to 78.34 MMSCMD as compared to 72.46 MMSCMD during the corresponding quarter of the previous financial year. The LPG transmission during the fourth quarter during the financial year 2005-06 increased by 21 percent to 690,000 MT as compared to 570,000 MT during the corresponding quarter in the previous financial year.

The company's market capitalization as on 31st March 2006 stood at Rs. 26,913 crore, an increase of 50 percent over the market capitalization as on 31st March 2005.