GAIL (India) Limited

Hi, good morning, everyone. Welcome to Q1 FI26 Earnings Call of Gale India Limited hosted by Macquarie. From the management team, we have Mr. Rakesh Kumar Jain, Director of Finance and other senior executives. So without any further delay, I would like to invite Mr. RK Jain for his opening remarks, which will be followed by a Q&A session. Over to you, sir.

Thank you, Mr. Joshi from Macquarie Capital. Dear friends from investors and analyst community, And my colleagues present here, a very good morning and warm welcome to this call for Q1 financial year 26. At the outset, I seek my apologies for being eight to nine minutes late because of unavoidable circumstances. There was a heavy rain in the morning and a lot of water logging. So my apologies for that. I take pleasure to inform that the Durgapur-Palkata section of Jagdishpur-Haldia-Bokara-Dhamra pipeline has been completed and dedicated to the nation by our Honorable Prime Minister on July 18, 2025. With the commissioning of this pipeline, now Bengal gas will be connected to natural gas pipeline and they need not take the molecule through cascade and HPCS3 GA will also get connected and there is a potential of 0.4 MMSCMD for these CGs on immediate basis once they start taking. Another development on July 23rd, 2025, Gale has got PNGRB's authorization for capacity expansion of Gale's Jamnagar-Loni LPG pipeline. The current capacity, as you know, is 3.25 mm TPA. With the authorization of expansion this capacity will increase to 6.5 mm dp. This pipeline will involve a capex of 5000 crore and it is on this project and the authorization as per authorization we have to complete this project within three years. Gail's result for quarter ended June 30th 2025 having declared yesterday and You must have gone through those results. And now I would briefly touch upon the major highlights for this quarter, post which we may open the session for queries. Gates gross turnover stood at rupees 34,735 crore in Q1 financial year 26, as against 35,602 crore in quarter four financial year 25, you can say which is almost at same level. Profit before tax stood at Rs. 2,533 crore as I guess 2,701 crore in Q4 financial year 25. This is down by 6%. And you know, mainly we receive dividend incomes in, we do not receive dividend income Q1 and that was around 239 crore in Q4, which is not available. So this may be one of the major reason for this deficit. Further, PBT for Q1 financial year 26 also includes one-off item that is Rs. 133 crore on account of differential settlement of unified tariff. This pertains to previous period, so that's why it is one-off item. The profit after tax for the quarter decreased to Rs. 1,886 crore as against Rs. 2,049 crore in Q4 financial year 26. and this is down by 8% and regions are safe. When we compare with the corresponding quarter for last financial year, that is Q1, financial at 25 as compared to Q1 financial at 26. Gale achieved turnover of 34,735 crore as against 33,623 crore. An increase of 3% in PVT stood at 2,533 crore as against 3,642 crore. And profit after tax is true that this quarter I see here, 1,886 crore, as I guess 2,724 crore in corresponding quarter last year. And now I will touch upon the physical performance of the company during the quarter as compared to previous quarter. Gas marketing volume during the quarter stood at 105.45 MMSCMD as a gas, 106.53 MMSCMD in Q4 financial year 25, almost a million difference. We can say it's a flat volume sale. Natural gas transmission is also almost flat as compared to Q4-25 in Q1-26. So there was a physical volume transmission of 120.62 mm CMD as compared to 120.83 mm CMD in Q4, financially at 25. And our capacity utilization, if you talk on overall basis, it is 58%. If you talk of integrated pipeline system, which is our major pipeline system, it is 67%. Polymer production is down to 177 TMT in Q1 as against 215 in previous quarter and this is normal phenomena. We basically take our annual turnaround shutdown during Q1 and therefore this reduction in production is because of that reason only. LST production is almost flat and it stood at 199 TMT as against 196 TMT in previous quarter. LPG transmission was also flat. It was 1131 TMT as against 1132 TMT in previous quarter and the capacity utilization is 99% during this quarter. Let me take you to consolidated financials of Q1 financial year 26 as compared to Q4 financial year 25. The consolidated turnover in Q1 financial year 26 stood at Rs. 35,369 crore as against Rs. 36,443 crore. BBT in Q1 financial year 26 stood at rupees 3029 crore as against 3240 crore in Q4 financial year 25. Profit after tax in Q1 financial year 26 stood at rupees 2369 crore as against 2492 crore in Q4 financial year 25. I will also take you through the Gaze EGDs. As you know, we have six geographical areas authorized under the Gaze Gale's balance sheet. So Gale is having direct authorization of six GAs and has infrastructure of 212 CNG stations and 4.4 lakh DPNG connections. During the quarter, 2,600 new DPNG connections were added and three physical value remained at 0.46 MMS CMD during the quarter with the share of APM gas at 0.169 MMS CMD and RLNG 0.291 MMS CMD. In the next year, GAIL's target to add around 85 new CNG stations and around 1,50,000 new DPNG connections. I will also take you through the performance of Q1 financial year 26 with respect to GAIL Gas Limited. As you know, this is our 100% subsidiary. In Q1 financial year 26, turnover of Gale gas stood at 2927 crore as against 3051 crore in Q4 financial year 25. BBT increased by 1% and stood at Rs. 146 crore as against Rs. 144 crore in Q4 FY25. PAT was up by 6% and stood at Rs. 108 crore as against Rs. 102 crore in Q4 FY25. Physical volume stood at 7.03 Mscmp. During Q1 financial year 26, Gale Gas along with its JV subsidiaries has added 23,593 new DPNG connections and three CNG stations. Gale Gas with its subsidiaries have an infrastructure of 11,30,000 DPNG connections and 664 CNG stations. In next two years, Gale Gas along with its JV subsidiaries target to add around 260 new CNG stations around two lakh sixty thousand new dpng connections i will also take you through the status of ongoing projects which gail is taking up uh pipeline projects uh majority of pipeline projects which mumbai nagpur jharsukra pipeline as you know this is one of the major pipeline project we are executing correctly jagdish for haldia bokaro damra pipeline all these pipelines are scheduled to be completed during current financial year in a progressing manner We have one more authorization of pipeline, Gurdaspur-Jammu pipeline, and this pipeline is scheduled to be completed in financial year 2026-2027. In respect of petrochemical projects, as regards the petrochemical projects, there are 60 KTA projects and 1250 KTA projects. These two projects we expect to be commissioned during current financial year. With respect to PDHPP, that is 500 KTA plant, this is delayed and is likely to be completed in next financial year. That is 26-27. Now I'll also take you through the capex of Q1 financial year 26. During this quarter, a capex of 3,176 crores was incurred, out of which 536 crores incurred on pipelines, 542 crores incurred on petrochemicals. There is a equity contribution of 1458 crores, operational capex and some other capex, 549 crores in CGD, ENP, renewables, etc., And now I will take you through the short to medium-term outlook of Gill's business. We have been giving you regularly guidance about our marketing margin and this quarter our marketing margin stood at Rs. 994 crore and as per our guidance which we gave during our analyst meet, annual analyst meet in may we said that during this year we will earn around four thousand to four thousand five hundred crore rupees of marketing bar it is this financial year as we have already earned 994 crore of marketing margin during q1 we maintain our guidance of four thousand to four thousand five hundred crore of marketing budget for the financial year 25 26. In gas transmission business, this segment has seen some kind of the unexpected decline in volume. We gave our guidance when we met with you in analyst meet. we gave a guidance of 138 to 139 mm scmd volume and subsequently we revise our guidance to 132 mm scmd and we also share the regions with you for the revision in guidance and let me just to keep you uh the Give the brief again, what were the regions? There was a reduction in refinery shippers volume around 3 million, power sector volume because of early onset of monsoon. We were apprehending at that point of time and actually it is becoming early onset of monsoon. It's a good monsoon this year. There is a reduction on annual basis of 1.2 mm CMD in sales and 0.4 mm CMD of shippers volume in all 1.6 mm CMD in terms of transmission volume. And fertilizer plants, this quarter we have seen an unscheduled shutdown of some of the fertilizer plants. And that has also resulted in 1.4 MMSC reduction. And one of them is KFCL, which is currently not operating. Due to above regions, we actually revised our guidance and as you saw that our transmission volume in Q1 was 120 plus and considering the expected transmission volume in remaining 9 months, we want to give the realistic realistic guidance we are not optimistic of around 132 revised guidance we expect this year on an average basis will end around 127 to 128 mmcmd of volume And this is because of the IRJ share, the frequent tripping of unplanned shutdown of fertilizer. And there is a slight reduction in CGD volume as we envisaged last year. Power, refinery, around 0.5 mm CMD in each of the sectors. Because of these regions, we feel that our revised guidance of 127 to 128 is achievable and therefore we want to revise it. In respect of coming financial year, we believe that our transmission volume will increase to 135, 236 MMS CMD. And this largely will come from natural growth of CGD, which is taking place and various refineries, which are coming up, Baroni, Paradi, Faldiya, Bowingo, Guwahati, and some other customers, which will be coming up along our new pipelines. In respect of polymer, polymer production stood at 177 as I shared with you as I guess 215 in previous quarter. The Pata Petrochemical Complex was also under shutdown in April 25. So there has been a loss of 249 crore. and largely why this is there is a loss there is a actually there is a reduction in the polymer prices by around thousand rupees as compared to q4 financially at 25 this is leading to the major major region for reduction and also in q1 we see the shutdown impact also comes we are taking all the measures to keep our Pata plant at a better level than this level. And we also expect that the current prices of the gas may also soften, so we will be able to improve. But as of today, this is a situation that we lost 249 crore on petrochemical plant Pata in Q1. LSE production stood at 199, I shared with you. We have posted PBT of 205 crore and there is a drop of 30% PBT from LSE segment as compared to last quarter. And which is primarily the regions we have shared, the deallocation of PPM gas and also subsequently allocation of new oil gas, which is a costlier gas. And prices of LSE has also reduced by 2000 rupees per metric ton I think this is the current quarter the Q1 quarter performance I have shared and also I have shared our revised outlook and also the outlook of other segments and now I hand you over to you Joshi ji take us through if any questions the our investors and analysts that we will be happy to answer those questions i am here and my colleagues from various departments the marketing department and the product the product the project development department the finance and city gas distributions are here we will be happy to answer your any any the questions you may have thank you very much

Thank you, sir. We will now start with the Q&A session. Participants, please use the raise hand feature to ask any questions. And in the interest of time, please limit the number of questions to two. With that, we'll take the first question from Nitin Tiwari from Philip Capital. Nitin, please go ahead with your question.

Hi, good morning. I hope I'm audible. So, sir, my question is related to the tariff revision that we had guided for in the earlier quarter, that most likely we are going to see that revision by the end of first quarter. So any renewed guidance over there? That would be my first question, sir.

Actually, in respect of tariff revision, we get guidance. We do not give guidance. We continue to follow up with the regulator. And what I can update you about the process part. The regulator has completed the process of consultation. They are now seized with the finalization of tariff agenda for approval of their board. And we also are following... now any timeline if i give i have been giving a lot of timeline if i say it comes in next month or i say in maybe in october or september maybe may not be correct but what i can tell you it has already been ordinarily delayed and we as a company are following we expect that tariff order to come as soon as possible and if i say august and i meet you in august you will say it has not come because it is beyond my control but we expect it may come any time from now

Got it, sir. And so my second question is with respect to the FedChem business. So this quarter, of course, was impacted by the planned shutdown that you've undertaken. But can you give us some color in terms of how the market is looking in terms of product placement and whether we are finding any challenges with respect to placement of our products in the market in terms of pricing? And when can we see a more secular trend in terms of profitability in this segment? Because this segment has been suffering with operating losses for some time now.

In terms of product offtake, there is no challenge. There is a good amount of demand available in market. We do not even carry the stocks with us. The challenge is largely on price part. We are going through a cycle, the pricing cycle, where there is a lot of availability of polymer in international market that is also pushing the pricing pressure to price towards downward. And second, unfortunately, which we did not envisage last year, the henry of price which we give to our part has almost doubled which was average henry of price last year was 1.88 per mbtu is on an average basis this quarter was 3.5 per mbtu that means the 1.7 dollar parameter and consequential taxes uh the duties and implications this is putting a lot of pressure So, though we are taking all the measures, let me tell you, we are regularly taking the hedging, doing hedging for input gas prices to reduce the prices for part of petrochemicals. Yesterday also, we took the hedging around $3 per annum. So, we try to take all the measures. But in terms of guidance, we do not feel that we will be very good in petrochemical business in this year. We may be able to reduce our losses. We may be trying to come nearer to break even level, but I will not be able to give you any guide as we say that we will be in black during this year as far as petrochemical business is concerned.

Understood. Thank you so much for answering my questions. I'll get back into you for further questions.

Thank you. We'll take the next question from Puneet Gulati from HSBC. Puneet, please go ahead with your question.

Yeah, thank you so much. Thank you so much, Angie, for your very candid talk. My first question is on your transmission guidance. While you did reduce your guidance for this year, even for next year's, you've brought it down to 135, 136. Why would you do that, if you can share more light on that?

Every year will not see the monsoon like this. Every year will not see the tripping of fertilizer plant like this. That is two major reasons which have brought down. Let me tell you.

Your next year, I thought, was higher earlier, right? I mean, you were guiding for 140 plus.

We have already factored. You know, we have now considered the base of the revised guidance of 127-28 to give you the guidance for next year. It means we have reduced the abnormality for this year and natural growth, the pipeline which are coming next year for the purpose of guidance. We give guidance which is actually on ground. I could have revised my guidance of 27 or 28 in next quarter, but I feel I should give you guidance which is actually realistic as on it.

Okay. Secondly, if you can also talk about this differential, you know, tariff impact for previous year, 133 crore. What is the nature of that?

Actually, what is, I understand you may be knowing what is integrated tariff and what is unified.

Yeah.

There is a mechanism in PNG-IRB that there is a settlement committee which takes the input from the entities with respect to their claim of respective pipelines because our claim is based on our pipeline uses. So there was a differential claim for some zones for previous year, the two previous years are involved, 23-24 and 24-25. Those claims during settlement we did not submit when last committee meeting took place and then we submitted our claim and PNGRP has accepted. That's what I understand. That's the claim which do not pertain to this quarter. claimed in this quarter pngrb acknowledged that there was a miss there was a missing link in terms of our claim there was lesser claim by us that is that difference and which continues to happen sometime it is on higher side but this was this time this was a substantial figure so therefore i i thought that let us cover in our our opening remarks that 133 crore is one of which you do should not consider that it is available always understood that's very helpful thank you so much and all the best

Thank you. We'll take the next question from Vivekanand S. from Ambit Capital. Vivekanand, please go ahead with your question.

Yeah, thank you for the opportunity. Thanks for the frank and candid guidance on transmission. So I know you've covered some of this in the opening remarks. Could you delve a bit more, Mr. Jain, on the specifics of the granularity of demand, incremental demand that you expect in FY27 and FY28? FI26 seems to be lost given the first half being very weak compared to last year's base. If you could talk about specific sectors and also demand sources that you may have modeled in detail so that we can jot down. Thanks. That's the question.

So I understand you are asking me the next year's projection and basis of our next year's projection. Is that right? That's right. So we have given our revised guidance for 128. And we have been experiencing that CGD is naturally growing at the rate of 12%. There may be some quarter on quarter difference. So even if you consider that demand, almost 5 million on country level basis, the demand comes from CGD gas distribution. We being a pipeline infrastructure company, having almost 65 to 70% of pipeline network for Gale, on a ballpark basis, 3.5 million naturally comes from the sector which has been coming and the sector is regularly giving hope. Second, this quarter we lost a lot of volume. Let me tell you, last year we transported 131 million. This year we transported 120. And large part of this was from power sector, which was not expected. Today when I am late, it is because of raining only. So because of the weather conditions, power demand was not there. So we expect at least 1 to 2 million on an average basis demand will be there from power sector, which has been there. Then we are commissioning new pipelines like I shared in opening remarks, Calcutta section of the pipeline. We are commissioning Mumbai-Nagpur-Jasugra pipeline. We are commissioning Shekakula-Mongol pipeline. Volume will come from there and the refinery which I shared. The Baroni Refinery, Paradip, Haldia, Bungayga, Guwahati. What happened in this quarter, one unique thing, the alternative fuel prices were down. Therefore, refinery's volume also reduced. They also switched over to alternative fuel. In fact, the spot demand we used to come regularly because of higher grass prices were not available. We do not believe that such situations will always be there. We believe in normal business and therefore all these things will give at least 8 to 9 million volume. 5-6 million is anyway available. 2-3 million volume has gone down this year and the natural growth. So 8 million volume to 9 million volume we expect will be available next year and this guidance is on a realistic basis and not a very padded guidance.

No, I appreciate the color. Thank you. That really helps because otherwise it's difficult for us to understand the path from 121 to 135. Thanks for that. My second question is on the petrochemical investments. You were planning to undertake an ethane cracker investment in Madhya Pradesh. Is there any further update on that and Secondly, can you just also refresh us on the other petrochemical projects that are currently underway where you've already committed capital and the project progress is somewhere in between?

So I share in opening remarks 160 KTA project we are putting at Pata and it was because of the feed is available at Pata and another is PDHPP project at Usar. These two projects are going to be commissioned. The PP will be commissioned during this financial year. PDHPP will be commissioned next financial year. Regarding Ethane Cracker, let me tell you, we being a commercial organization, this i have been telling a lot of times we being a commercial organization and having the wherewithal to invest in new projects look for opportunities the madhya pradesh is one of that opportunity we we we we time to time evaluate the newspaper cuttings you may have seen that those come but in respect of decision of investment we have not taken any decision on investment Any decision on investment will be taken based on viability of project, whether that project is viable, what kind of incentives are available. If incentives are available, certainly making our bridge, you know, we are able to have our hurdle rates. We will take decisions. We have not yet taken any decisions. We time to time evaluate various opportunities. The ethane cracker is one of those, that opportunity we are reviewing and evaluating.

Thank you, Mr. Jain, for the detailed color. I'll join back the queue.

Thank you. We'll take the next question from S. Ramesh, Nerman Bank Equities. Sir, please go ahead.

Hello, can you hear me?

Hello? Hello? Yes, yes, we can hear you, sir.

Good morning, sir. Thank you for the opening remarks and the details you've shared so far. So if you look at the decision to defer the PDHPP project, can you highlight the reasons for this? Is there any concern in terms of the margins or is there any physical delay in the progress and does it impact the capital cost for that?

Actually, there is no margin concern that we have delayed the product. We want this product to be completed as quickly as possible. One of the, you know, civil contract which is causing a problem, there are delays on that part and that becomes a base part of any project. So we are regularly reviewing that and that's the only reason. Otherwise, nothing more than.

So, what is the reason for the increase in the reduction in the depreciation from more than 1000 crores to 800 crores? Depreciation?

My colleague Anjana will explain you.

Actually, we have assets which are fully depreciated and any major overhauling or repairs is reflected in depreciation. we had carried out overhauling of our compressors, which is not there in this quarter. And last year we had full shutdown at Pata. This year we had partial shutdown at Pata. So even Pata also major overhauling and major spares were capitalized and fully depreciated. So that is the change in the depreciation this time.

If I may squeeze in one last question, in the gas marketing segment, a bit between standalone and consolidated, there is a downside of around 400 crores from 1071 to 660. What is the reason for that decline in the gas marketing segment earnings in the consolidated entity?

Under the standalone, we are including CGD. And under the consolidated, we are separately showing CGD. So, profit of CGD has been isolated from the console, standalone to console. So, if you see in the console figure, so we have shown separately CGD.

So, you are saying the gas marketing in... There is a regrouping from marketing to CGD. From standalone to consolidated. Okay, but how can it be such a large swing? That 400 crores seems to be a fairly large swing. Is there any negative impact on the subsidiaries?

If you see overall, there is no change. We have multiple JVs and associates which are operating in CGD segment. One is Gale Gas, Bengal Gas. So it is the impact of those CGDs, the subsidiaries which we have taken.

So you're saying whatever marketing margins you're booked in standalone is shown under the CT gas in this consolidated checking. Is that the way to understand that?

Yes, yes, yes.

Okay, thank you very much. I'll follow the key.

Thank you. We'll take the next question from Prabhul Sen, MyCCI Securities. Sir, please go ahead.

Just one question, a broad question on the direction of crude prices and what impact it will have on our business. On the one hand, obviously, if crude prices go up, term LNG prices and any other LNG linked to crude does go up. But what we have seen in this peculiar situation where alternate fuel prices had actually gone down as a result of softness, which caused lower demand from downstream. So just wanted your view on what kind of, you know, what scenario you see if, say, let's say crude goes up by maybe another $5 from here. How do you see the, you know, mix of demand as well as, you know, the input costs playing out for us? That was my first question.

I think crude prices, as everybody has been talking, they are largely expected to remain in the range of 60 to 70 dollars in next few years. However, we have seen earlier also and which cannot be ruled out is the geopolitical events which keep on happening very frequently and which tend to push the crude prices upwards on for few months. Largely they are otherwise they are largely remain expected to remain in the 60 to 70 dollars. As far as your option is concerned, some of the alternate fuels like naphtha, furnace oil, while they are correlated with the crude oil prices, they are also linked to the refining complexities. And they are consistently remaining subdued, the alternate fuel prices, especially the propane and the naphthas. which are a matter of concern and what happened actually this year the summer got whitewashed because the spot prices of natural gas never came down. They were not very high but the summer phenomena didn't happen in the spot gas prices which has resulted in lower natural gas demand which could not compete with the alternate fuels. This is slightly abnormal. Normally the natural gas prices are able to compete even with the alternate fuels and that is why This year, all these factors got combined.

Right. So just as a follow-up, I mean, how do we then look at it if I look at the next, let's say, 12 to 18 months? Particularly, you also mentioned, I think, for Petchem, that Henry Hub prices, which is also a major component of our sourcing mix, those also have risen. So, you know, if you look at our input cost scenario, basically going forward for the next 12 to 18 months, what do we really see in terms of our margins and pricing for Petchem, for LHC, as well as for, you know, the trading or marketing partner? Just your view on, just a very broad view in terms of how you see that evolve.

Patcom, we believe that the output prices are currently on a lower side and we believe that this should be up by maybe few thousand rupees. that is actually putting pressure secondly and as i shared the henry price which we are using is also not supporting us last year it was substantially down but as my colleague also said with respect to question this is actually not a normal situation which we are experiencing that andrea prices are higher So, we believe that these prices to be softened and time to time we also regularly tracking the market and taking positions in paper market to keep the cost down. So, first the optimism, our expectations that price will come down, second our actions on paper market will help, certainly help the Patapetra Chemical to improve performance.

how much we are able to do that really difficult to predict but we'll say we'll be able to improve from the situation we are in we are in today understood so if i can squeeze in one last housekeeping question capex guidance for fi 26 and 27 if available

We have capex plan of around 12,000 crore in financial year 26-27. And that largely will be pipeline projects around 4000 crore rupees. CGD projects, very small capex of around 200 crore rupees. Petrochemical projects, 2500 crore rupees. ENP 500 crore rupees we have net zero plan and we are working on that around 2000 crore rupees then operational capex 1400 crore rupees equity contribution 850 crore rupees and there are other projects 500 crore rupees understood sir thank you so much for your detailed answers I'll come back and thank you thank you we'll take the next question from Sabri Hazarika from MK Global sir please go ahead with your question

yeah so so so regarding this transmission guidance so 127 is for the full year average is that right yes yes and what is the run rate currently the volumes that we have lost what you have mentioned when we fell to like say around 120 so right now fertilizer plants and all they have normalized or right now what could be the run rate if you're able to disclose actually the current run rate is hovering around

the average which we expected and around 132. That means 127 to 130, 131 depending on the day. If it is Saturday, Sunday, not Saturday, Sunday, it goes down to the average of 127. If it is not Sunday, then it is around 130, 131. And also it is depending on the weather conditions. So, fertilizer plants are almost now working at a normal level. But then we are running at around 127. Currently, if you talk of July, we are running at around 127 and sometime beyond that. And even someday there will be one or two million lower. So we have worked out from where this volume will come because as we are connecting pipelines also, that is not factored today. When you talk July, those pipelines are getting connected, those volumes will be added. So all these we have... worked out how from where these volumes comes but again to sum up we are currently in this month working running around transmission around 126 127 sometime 130 130 and and this double is operating normally this monster right double yes that's a that's a positive for us

Okay, sir. And the second question is on this PDH PPE. So right now, how are the margins of PDH PPE?

Actually, when we conceived this project, it was giving us beyond our hurdle rate. And even today, we are expecting around 13 to 14% of project IRR. and that's how we have sent your check and let us see how it goes that's the current expectations and this propane will be brought from middle east only or do you are you looking at us and other things long-term contract with bpcl for 15 years contract where we bring the propane at jetty one contract is for with respect to jetty this is a bundle contractor they will supply us on saudi cp basis So that's the benchmark, where from the source, what they do. But for us, index is fixed.

OK, Aram Kusipi. OK, sir. Thank you so much, and all the best.

We will take the next question from Vikas Jain, CLSA. Sir, please go ahead with your question.

Hi. Thanks for taking my questions. And thanks for the presentation. Gail team and Rakeshji. Rakeshji, just one, since you mentioned that you are at 127 right now in terms of volumes in July as compared to one less than 121 for the quarter. So this extra roughly six on an average, is this largely from fertilizer plants now operating normally as compared to the scheduled and unscheduled shutdowns that we saw in the first quarter? Or is there anything else which is more noticeable? It's primarily that bit, is it?

It's primarily that and also we were not operating our Pata petrochemicals during the first quarter. That was also on shutdown. So that is also substantial. So in terms of major volume, this is from two sectors, the fertilizer and also from Pata.

And sir, this... To give a guidance of 128 means you're talking of possibly going well above 132 at the exit levels. So this incremental, is there hope built in that players like Refinery, etc. will come back? And is there that is going to take volumes back to 128 on an average for the year?

That is part of that working.

And of the current volumes, what proportion is the more price sensitive sectors like refinery and maybe, you know, petrochemical? How much is of this 127 that you're currently doing in July? What proportion is refineries and what proportion is petrochemicals?

Just hold on.

I was asking my colleague in marketing. Say that refinery petrochemical segment is roughly 20% of the whole basket. And... Going forward, why we are hopeful of achieving this number is primarily because number one, Pata was shut down as sir has already conveyed. There were some scheduled shutdowns of fertilizer plants, but there were also a lot of unscheduled shutdowns. So all these three factors will not be there going forward. The scheduled shutdowns, the unscheduled shutdowns and the Pata shutdowns. And we are still hopeful of some demand coming from the power sector in the late summers like September, October, which normally comes back after the monsoon season, especially when the monsoon this year has happened very early.

Okay, sure. Two last bookkeeping things. One is that this 133 crores would be revenues for the gas transmission segment. Just double confirming that, right? That's the extra... And in your opening remarks, you mentioned that you've achieved a marketing margin, which I'm assuming is marketing EBIT of 994 crores. But I think the release has somewhere around 1070 or something. Can you confirm which number or what is the difference?

Hold on. Hold on. Hold on, Vikas.

Basically, you are talking about the publications, what we publish in the quarterly accounts. That's right. About only PBT levels.

Okay, so what 994 crore is the PBT level you mean? And the publication is EBIT.

That's what you mean. In fact, if you compare with guidance, it is 1071. That's what we did.

So the guidance that you have of 4000 to 4500 crores, as against that, we have got 1070 crores.

And similarly, we have been giving last year's guidance.

Sure, sure. No, no, no. Just because that number was confusing. Thank you so much, sir. Thank you.

Thank you. We'll take the last question from Amit Murarka from Access Capital. Amit, please go ahead with your question.

Yeah, hi. Hope I'm audible. Just a question on the PNG-RB revision. Like, I believe it's been, like, in more than one and a half years since we have been talking about it. So I just wanted to know when this revision happens, it will be prospective, right? Just wanted to confirm that.

Actually, regulation is like this. The month in which the tariff is approved, it is applicable from the subsequent month from the month it is approved. So if it is approved, say in July, it will be applicable in August. Only thing is that what PNGRO does, first they approve the tariff, then they ask entities to submit journal tariff. When we submit the journal tariff, that is actually the approval, but that's a very, very small process. So that sometime also delays maybe by 15 days, but it will be prospective.

Right. So more or less, I mean, I believe three years anyways is the regular timeline for review of pipeline tariffs. So more or less we are falling along those timelines now. Let's say it's getting delayed by further another six, eight months. So I just wanted to reconfirm that. Will it still be an interim review or how does it work?

Actually, there is nothing in regulations which is called an interim review. The periodical review happens in five years, but not before three financial years. This time they called for submission of tariff, the PNGRV called, because there is a provision in the regulation that if any change in substantial parameters, then they can, either we can approach or they can ask. There was substantial change in the parameter in terms of capacity, also in terms of gas prices. PNG-RV, when they revised the RIV last time, they considered significantly higher capacity. Later, they engaged EIL and based on the recommendation of EIL, PNG-RV, revised the capacity, which is downward. Secondly, they considered the EPM price of $3.61, which are non-existent price, and now they have come out with the regulation that they will consider $11 as a gas price for fuel consumption. So that's, of course, they have come recently, but that was in their mind. So there were the reasons they... did not follow the regular timeline and it is in terms of regulation only that can be called for so this will there is nothing like entry but you can say because of change in parameter they can revise it so this is in that sense it is entry thank you sir that was the last question over to you for any closing remarks

Sir, I request you to unmute your line for any closing remarks.

Sorry. So thank you very much. It was a nice interaction with you all and hope we were able to answer to most of your questions. Maybe all the questions I feel and you or investors may have any more questions. Certainly we welcome you and you can connect with our Mac and IR team and which will be happily responding to any more questions you may have which we could not answer or we could not ask. Thank you very much.

Bye.