The shares of the largest Natural Gas Company gained up to 0.30 percent after the company came into a joint venture for setting up the CBG plants with an investment of USD 72 million.
With a market capitalization of Rs 1.06 lakh crore, the shares of GAIL (India) Ltd were trading at Rs 162.70 per share, decreasing around 0.70 percent as compared to the previous close price of Rs 163.85 apiece.
According to the company filing, GAIL (India) Ltd came into a joint venture with TruAlt Bioenergy to set up the CBG plants with an investment of USD 72 million this will be funded through a combination of debt and equity. This JV aims to set up 10 plants aiming at over 33 million kgs production.
GAIL has signed a Term Sheet to participate in TruAlt’s joint venture firm Leafinti Bioenergy Limited, which owns and runs India’s second Compressed Bio Gas (CBG) facility.
Furthermore, TruAlt Bioenergy and Gail India shareholding in this JV would be 51 percent and 49 percent. The joint venture will treat over 600 million kgs of organic waste per year, including agricultural residue, sugarcane press mud, wasted wash (trash created during ethanol production), and other decomposable waste, to produce over 33 million kgs of CBG.
The company’s revenue decreased by 14.66 percent from Rs. 38,680 crores in Q2FY23 to Rs 32,986 crores in Q2FY24. Further, During the same period, Net Profit has increased by 87 percent from Rs 1,305 crores to Rs 2,442 crores.
The company owns and operates a 2,040 km LPG pipeline network majorly are Jamnagar-Loni Pipeline (JLPL) and the Vizag-Secunderabad Pipeline (VSPL). JLPL and VSPL networks together achieved a throughtout of 4.335 MMTPA during the FY 2022-23 against 4.199 MMTPA in the previous FY 2021-22.
GAIL (India) Limited is the country’s largest natural gas company, with operations in natural gas transmission, marketing, and processing.
Written by:- Abhishek Singh
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