This is the first time in the past six quarters that the company has booked a drop in profit due to increase in company"s subsidy contribution for liquefied petroleum gas, GAIL said in a statement. The subsidy provision more than doubled to 9.02 billion rupees from 3.38 billion rupees a year earlier.
GAIL, Oil & Natural Gas Corp. and Oil India Ltd. (OINL) are required by the government to share part of the revenue loss incurred by state-run oil marketing companies, which sell fuels including diesel and cooking gas at subsidized prices. The share of fuel subsidy borne by the companies was increased to 38.8 per cent in the year ended March 31, 2011.
The net profit of company for FY 2010-11 stood at Rs. 35,611.30 million as compared to Rs 31,398.40 million for the year ended March 31, 2010.