GAIL, the nation's largest natural gas distributor, on Friday reported 42 per cent jump in its September quarter net profit as it did not pay any fuel subsidy.
Net profit for July-September rose to Rs 1,302.9 crore from Rs 9,15.67 crore in the same period a year ago, the company said in a filing to the stock exchanges.
GAIL, which along with state explorers ONGC and Oil India, met a part of the revenue loss that fuel retailers incurred on selling diesel, domestic LPG and kerosene at government controlled rates, did not pay any fuel subsidy in Q2, 2014-15. The subsidy payout was by way of discount on crude oil and LPG they sold to the refiners.
"The company provided nil discount for the quarter ending September 30, 2014 (previous year corresponding quarter: Rs 698.68 crore) as the company has not received orders from Petroleum Ministry relating to sharing of under-recoveries on LPG for the quarter," GAIL said.
The provisional discount provided in April-September was Rs 500 crore as compared to Rs 1,398.68 crore in the same period last fiscal.
"Effective April 1, 2014, the company has revised the useful life of fixed assets for the purposes of providing depreciation on fixed assets. This resulted in increase in profit before tax to the extent of Rs 69.37 crore during the quarter ending September 30 and Rs 138.74 crore in half year ended September 30," GAIL said.
GAIL said with oil regulator PNGRB fixing lower tariff for various pipeline network effective from November 20, 2008, the company has "derecognised the revenue by an amount of Rs 192.84 crore during the quarter (previous year corresponding quarter: nil) and Rs 434.43 crore in first half."
Revenue was marginally higher at Rs 14,063.18 crore in Q2 when compared with Rs 13,944.55 crore a year ago.