The state owned gas marketing company GAIL posted a 45 per cent rise in net profit during the last quarter of FY’10. The total fourth quarter profit were Rs.911 crore.

Addressing a press conference, GAIL chairman B C Tripathi announced company will incur the capital expenditure at about Rs 8,000 crore in the financial year 2010-11 and said the company is examining a Rs.500 crore bond float and issue foreign currency bonds for $150 million to support its network expansion program.
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The fourth quarter profit went up to Rs. 911 crore from Rs. 630 crore in the previous corresponding period. Total income increased to Rs. 6,522 crore during the January 2009-March 2010 period from Rs. 6,128 crore in the same quarter a year ago. But gas sales declined to Rs. 4,665 crore from Rs. 4,743 crore in the year-ago period as GAIL did not bring in any spot LNG cargo.

Tripathi said, GAIL plans to invest nearly Rs. 35,000 crore in the next 3-4 years in several pipeline projects, upgrade of petrochemicals units and wind and solar power plants. GAIL is likely to borrow nearly Rs 20,000 crore in the next 3-4 years to fund the expansion. “We hope to lay 1,200 km of pipeline by the end of this year, after which our gas transmission capacity will become 200 million cubic metres per day,” Tripathi said.

The subsidy burden stood at Rs 1,327 crore in 2009-10. Total income also rose to Rs 25,537.50 crore during 2009-10 from Rs 24,695 crore in 2008-09, mainly on account of higher natural gas and LPG transmission.

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