Higher fuel subsidy tab had its adverse impact on the working of the GAIL (India) as it reported a 14 per cent drop in its net profit for the fourth quarter ended March 31, 2011, the first decline in six quarters, on being forced to pay higher fuel subsidy.
The net profit dipped to Rs.783 crore in the January-March quarter from Rs.911 crore in the same period a year-ago, Chairman and Managing Director B. C. Tripathi told reporters here.
“Our subsidy burden went up from Rs.330 crore in the fourth quarter of 2009-10 to Rs.902 crore in the fourth quarter of 2010-11 fiscal. This is the highest-ever subsidy paid by GAIL in any quarter,” Mr. Tripathi said. Upstream firms like ONGC and GAIL in 2010-11 have been asked to meet 38.8 per cent of the total revenue that fuel retailers lost on selling diesel, domestic LPG and kerosene at government-controlled rates. This was higher than one-third subsidy they provided in the previous fiscal. Mr. Tripathi said GAIL net profit was up 13 per cent in 2010-11 at Rs.3,541 crore. “If our subsidy burden would have remained at previous year's (2009-10) levels, the net profit would have been up 25 per cent or another Rs.500 crore,” he said. In 2010-11, GAIL's total subsidy payout was Rs.2,111 crore as opposed to Rs.1,327 crore in the previous year. Revenues were up 36 per cent at Rs.8,894 crore in the January-March quarter. Turnover, net of excise duty, in 2010-11 increased by 30 per cent to Rs.32,459 crore.
Rs.5.50 final dividend
The board has recommended payment of a final dividend of Rs. 5.50 per share.
