GAIL (India) Plans ₹10,000 Cr Capex For FY 2023-24
Gail (India) Ltd, the largest gas distributor in the country, Thursday said the company plans a capex of ₹10,000 crore for the financial year 2023-24 which will be funded through a combination of internal accruals and borrowings.
Sandeep Kumar Gupta, chairman and managing director of Gail said,"To fund the capex, we will have to see what kind of internal generations are going to be there in the next fiscal. But considering that we are at a very comfortable debt-equity ratio, we do not see any problem in raising fresh funds."
India’s largest gas distributor today reported a net profit of ₹603.52 crore in January-March quarter compared with ₹2,683.11 crore (787.5% decline) in the same period a year back, according to the stock exchange filing.
For the full year 2022-23, the standalone net profit stood at ₹5,301.51 crore, significantly lower than ₹10,363.97 crore in the previous year.
The fall in profit was because gas volumes dropped due to high natural prices and supply disruption from Russia due to Ukraine war, Gupta said.
"High prices and non-availability of lower priced long-term LNG contract supplies affected every segment of business, including transmission, petrochemicals, and marketing," Gupta added.
Gas consumption is likely to see a 6-7% growth, Gupta said. The company hopes that the situation will normalise. We don't anticipate prices to be very high (this year), he added.
With the softening in LNG prices and the resumption of supplies, the company expects the current year to be a promising one for the company.
Gupta said the company incurred its highest-ever capex of about ₹9,100 crore during FY2022-23 mainly on pipelines, petrochemicals and equity to JVs, which is 15 per cent higher than the annual target of ₹7,918 crore.
GAIL shares closed 3.64% down at ₹106 on Thursday, May 18, 2023.
Catch all the
Corporate newsand Updates on Live Mint. Download The
Mint News Appto get Daily
Market UpdatesBusiness News.
Next Story
No Network
Server Issue
Internet Not Available
Germany's Fragmented Government: A Crisis Of Leadership And Direction
Germany's government is struggling to maintain unity as internal conflicts within the coalition continue to escalate. Th... Read more
Strong Yen Reflects Positive Sentiment As Asian Equities Gain
The Japanese yen strengthened, reflecting positive sentiment as Asian equities posted gains. This trend highlights inves... Read more
Chinas Response To U.S. Tariffs: Threats And Predictions
Following the recent announcement by the Biden administration to impose new tariffs targeting $18 billion worth of Chine... Read more
U.S. Military Aid To Ukraine: Implications And Impact
In the shadow of escalating tensions and ongoing conflict in Eastern Europe, U.S. Secretary of State Antony Blinken's re... Read more
UN Secretary-General Urges Humanitarian Ceasefire In Gaza Amid Escalating Violence
As violence continues to escalate in Gaza, António Guterres, the Secretary-General of the United Nations, has issued a ... Read more
Driving Economic Transformation: China's Rmb1 Trillion Debt Sale
The Strategic Allocation of Debt Proceeds: China's debt proceeds are earmarked for strategic sectors that are poised to... Read more