GAIL (India) beats Q1 profit view on gas marketing boost

Birds fly past the logo of India's state-owned natural gas utility GAIL (India) Ltd in New Delhi·Reuters
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BENGALURU (Reuters) - Gas distributor GAIL (India) posted a bigger-than-expected profit on Tuesday, helped by strength in its natural gas marketing business.

GAIL, India's top natural gas distributor by market share, said its net profit rose by nearly 93% to 27.24 billion rupees ($325.45 million) for the June quarter.

Analysts had expected 22.56 billion rupees, according to LSEG data.

India's electricity generation has grown at an average of about 8% annually since the pandemic year of fiscal 2020-2021, amid intense heatwaves and increased economic activity, outpacing power demand growth in every major global economy.

GAIL supplies about 52% of the natural gas sold in the country, primarily serving the power and fertilizer sectors.

The state-run company's revenue from natural gas marketing segment, which accounts for the bulk of its overall revenue, rose 3.7%.

Meanwhile, revenue from its natural gas transmission segment, which commands about 70% market share in the sector, posted a 13.3% rise.

The company's revenue from operations rose by 4.5% to 336.92 billion rupees.Shares of GAIL settled 0.81% higher, ahead of results, taking YTD gains to 44.2%.

($1 = 83.7000 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru; Editing by Janane Venkatraman)