Gail India, a state-owned natural gas processing and distribution company, on Tuesday reported 8.5 per cent year-on-year decline in consolidated net profit at Rs 1,068.16 crore for the second quarter ending 30 September, 2020. The New Delhi-headquartered company had posted net profit of Rs 1,167.58 crore in the same period last year.
Consolidated revenue from operations fell by 24.3 per cent to Rs 13,809.86 crore as against Rs 18,249.90 crore in the year ago period.
On the standalone basis, the natural gas transmission company's profit rose 16.5 per cent to Rs 1,239.67 crore from Rs 1,064.25 crore in the same period last year. Revenue from operations fell 24 per cent to Rs 13,644 crore from Rs 18,041 crore a year ago.
The company's board approved borrowing upto Rs 10,000 crore in one or more tranches from time to time. The amount would be borrowed by way of rupee term loan, foreign currency term loan/bond, note, external commercial borrowing or issue of rupee denominated debentures or bonds.
On impact of COVID-19, GAIL said that the pandemic impacted business in India and caused a slowdown of economic activity. The company said that its physical performance has reached pre-COVID level during the quarter under review.
"The group has assessed the possible impact of COVID-19 in preparation of financial results based on the internal and external sources of information and expects no significant impact on the continuity of the business on a long term basis, the useful life of the assets and overall financial position of the group," it said.
Following Q2 results, shares of GAIL India closed 4.28 per cent higher at Rs 90.20 on the Bombay Stock Exchange on Tuesday.