GAIL (India) Limited

Good day and welcome to Gale India Q1 F420 Mornings Conference Call hosted by FTSU Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nilesh Kogais from HDFC Securities. Thank you and over to you, sir.

Yeah, thank you, Aman. Good evening, everyone, and welcome to Q1 FY20 earnings call of GAIN. We have the management of GAIN represented by Mr. A.K. Tiwari, Director of Finance, and other senior executives. I now hand over to the management for their initial comments.

Over to you, sir. Good evening. I would like to share some of the brief highlights and then we'll discuss on the questions which are there from the investors. So, again, good evening to all. The physical and financial performance of the quarter ended June 19 are already with you, and the same has also been made available on the GAIL website. I presume that all of you have gone through the same. However, for the benefit of audience, let me repeat the following few highlights for Q1 FY20. I would like to first share the physical highlight, then the financial highlight. The gas marketing volume has decreased by 1.87 mm S&D. mainly due to decrease in the domestic gas cell which is 4.14 mmHgMd and increase in the RLNG cell by 2.27 mmHgMd. There have been major shutdown at the customer and mainly fertilizers like CFCL, IFCO, AMLA, FULPUR, NFL, NFL VATINDA, GRIFCO which has impacted the supply as well as the gas marketing and sales. Overall transmission volume has decreased by 3.74 mm CMD mainly due to above reasons for major shutdown at the customer's end. The capacity utilization of NG pipeline has been 51% in comparison to the 53% which was in Q4 FY19. And the polymer production has further decreased by 68 TMT in comparison with the Q4, mainly due to shutdown for preventive maintenance and gas regeneration job. But I would like to mention here that poor shutdown, the plant is running fine, and we have made record production of 78 TMT in the month of July 2019, which is the highest. The LHC production has decreased by 36 TMT due to shutdown at Pata, Bhagodiya, Gandhar and C2-C3 plant at Bijapur. There is decrease in LPG transmission volume by 196 TMT mainly due to shutdown at HPCL carbon at BSPL and capacity augmentation job at JSPL. Now I would like to highlight the financial highlights for FY20. The gross sales for Q1 FY20 is Rs. 18,276 crore versus Rs. 18,707 crore, decreased by 2% mainly due to decrease in the PATCAM sale by 77 GMT, rupee appreciation, decrease in LSE sales, etc. However, the PVT for Q1 FY20 is Rs. 1,981 crores versus Rs. 1,740 crores in Q4 FY19, which is increase of around 14%. The pad for Q1 FY20 is Rs. 1,288 crores versus Rs. 1,122 crores in Q4 FY19, which has increase of 15%. Now the increase in the profitability are mainly due to profit in gas marketing segment has increased by 258 crores. I think the segmental profit and pivot is already available with you in the gas marketing segment 258 crores due to better realization on tradable volume. And the profit in energy transmission has increased by 90 crores, mainly due to increase in the weighted average tariff realization. The loss in pet chem segment has increased by 202 crores, mainly due to decrease in the petrochemical production sales quantity, increase in the weighted average cost of input, which is partly offset by decrease in the chemical consumption, repair and maintenance, et cetera. The profit in LSE segment has increased by 95 crores, mainly due to increase in the average LSC price realization, which is 5,200 metric ton in comparison with the last quarter. The profit in LPG transmission segment has decreased by 33 crores, mainly due to decrease in the LPG transmission quantity, and the profit in the other segments has increased by 61 crores, mainly due to increase in the EMP revenue, increase in the wind power revenue, etc. The capex during the quarter is 877 crores mainly due to on account of the pipelines. I would like to share that the tariff revision order for HBJ, HBJ Upgrade, Mumbai region KG Basin has been ordered. which are effective from 1st July 2019 and the commissioning at the KKM BPL Kochi Kurnath pipeline is already on base so commissioning is going on in a phased manner. The Urjaganga project is also as per our schedule and we have reached up to Dhobi, Patna, gas has been charged. In all the CGDs that like Varanasi, Patna, Kathakya and Bhanushad, we have already started our CGD sales, PNG, CNG. So these are the few highlights which I wanted to share with you. Now I request for any questions you have with the participants. Thank you very much.