State-owned gas utility GAIL (India) Ltd on Wednesday (January 15) announced a settlement agreement with SEFE Marketing & Trading Singapore Pte Ltd in connection with pending arbitration proceedings.
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The settlement, finalised today, involves SEFE Marketing paying $285 million to GAIL (India), marking a resolution to the dispute. The agreement also includes the withdrawal of the arbitration proceedings before the London Court of International Arbitration.
“The terms of the Settlement Agreement include payment of US$ 285 million by SEFE Marketing & Trading Singapore Pte. Ltd. to GAIL (India) Limited and withdrawal of arbitration proceedings before London Court of International Arbitration,” GAIL (India) said in a regulatory filing.
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GAIL (India) reported a 9.41% year-on-year (YoY) increase in net profit at ₹2,672 crore for the second quarter that ended on September 30, 2024, but missed the projection. In the corresponding quarter of the previous fiscal, GAIL (India) posted a net profit of ₹2,442.18 crore. The CNBC-TV18 poll had predicted a profit of ₹2,591 crore for the quarter under review.
The company’s revenue from operations increased 3% to ₹32,912 crore. The CNBC-TV18 poll had predicted revenue of ₹33,673 crore for the quarter under review. At the operating level, EBITDA was up 7% to ₹3,744 crore in the second quarter of this fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹4,529 crore for the quarter under review.
The EBITDA margin stood at 11.37% in the reporting quarter compared to 10.97% in the year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 12.3% for the quarter under review.
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Shares of GAIL (India) Ltd ended at ₹178, up by ₹2.10, or 1.19% on the BSE.
(Edited by : Shoma Bhattacharjee)
