Page 44 - Plastics News February 2021

Business news

GAIL Q3 net profit up 19% on RIL Q3 net profit up 8.8% to Rs

higher petrochem biz 10,251 cr on petrochem, retail,

telecom
atural gas major GAIL (India) Ltd has reported a sharp
N19 per cent increase in its third quarter net profit,
with the rise in its petrochemical margins offsetting eliance Industries
the company’s losses from the gas marketing segment. RLimited (RIL) reported a
According to details filed with the stock exchanges, the net profit of Rs 10,251 crore
firm posted a net profit of Rs 1,487.33 crore during the for the December quarter, a
October-December period (Q3FY21)—19 per cent more rise of 8.8 per cent, helped
than the Rs 1,250.65 crore recorded in the corresponding by record performance in
period of the previous year. GAIL’s had a bad quarter its petrochemicals, retail
in the natural gas marketing segment, falling into the and telecom businesses.
red with a loss ofRs 73.70 crore compared to a pre-tax With this, it became the
profit of Rs 466.52 crore the previous year. However, its first private sector Indian
petrochemical business swung into the black with a pre- company to cross the
tax profit of Rs 434.08 crore for Q3FY21, making up for its Rs 10,000 crore profit mark.
losses in the gas marketing business. In the corresponding For the December 2018 ended quarter, the company
quarter of the previous year, the company had seen a reported a consolidated net profit of Rs 10,251 crore
against Rs 9,420 crore in the same quarter a year
loss of Rs 8.51 crore in the petrochemical segment. Gas back. Consolidated revenue in the same quarter grew
transportation, the mainstay of the company, saw little 55.9 per cent to Rs 1.71 trillion. In a Bloomberg
growth with business remaining flat, as was the case with poll, eight analysts estimated a consolidated revenue
the LPG and liquid hydrocarbons business. GAIL recorded of Rs 1.4 trillion for the quarter under review and
a 13 per cent increase in over turnover for the period at a net profit of Rs 9,609 crore. Reflective of the
Rs 15,386 crore. “"Both physical, as well as the financial weakness in the refining business, gross refining
performance of the company, improved further across margin (GRM) for the company further fell to $8.8 per
barrel. For the September 2018 ended quarter, RIL
reported GRM at $9.5 per barrel, its lowest since the
December 2014 ended quarter. PP, PE and PVC prices
strengthened during the quarter by 18%, 8% and 29%
Q-o-Q respectively amidst strong demand recovery in
Asian markets. PP, PE and PVC margins over naphtha
increased by 31% ($ 698/MT), 13% ($541/MT) and 15%($
628/MT over Naphtha/ EDC) respectively on Q-o-Q basis
led by strong demand recovery across sectors. PVC
prices were at 10 years high level during the quarter.
RIL achieved highest ever quarterly domestic sales
by leveraging unparalleled supply chain,multimodal
logistics and pan-India warehousing facilities. "In
all major segments in Q3 as compared to Q2 FY21," an oil price environment that witnessed heightened
the statement said. Natural gas transmission improved volatility through the quarter, RIL has delivered strong
4% quarter-on-quarter, 8% in gas marketing, 3% in LPG quarterly results on a consolidated basis. Competitive
transmission, 3% in petrochemical sales, and 8% in liquid cost positions and integration benefits is core to our oil
hydrocarbon sales. GAIL's petrochemical performance to chemicals (Refining and Petrochemicals) business,
improved further in Q3, and the plant is operating at more driving sustained performance even in challenging
global business environment," said Mukesh Ambani,
than 100% capacity," the statement said.
chairman and managing director of the company.

Plastics News Februar y 2021 44