Petronet LNG Q2 profit up 90% on lower tax

Petronet said its board of directors approved a special interim dividend of Rs 5.50 per share for the current fiscal 2019-20.

Mumbai: Petronet LNG Ltd has reported 90 per cent jump in its net profit at Rs 1,089 crore during the July to September quarter compared to Rs 573 crore in the same period of the previous fiscal year.

Improved margins and lower tax outgo added to the spurt in the profitability of the country's biggest importer of liquefied natural gas (LNG). However, the revenue from operations slipped to Rs 9,361 crore from Rs 10,745 crore in Q2 FY19.

"The company elected to exercise the option of the lower tax rate of 25.17 per cent announced last month by the government," said Petronet in a statement.

"Accordingly, the net deferred tax liabilities as on June 30 last year and the estimate of tax expense for the quarter have been remeasured. The resultant impact of Rs 376 crore on deferred tax liabilities and Rs 70 crore respectively pertaining to the previous quarter have been recognised in the current quarter," it added.

Petronet said its board of directors approved a special interim dividend of Rs 5.50 per share for the current fiscal 2019-20.

Formed as a joint venture by the government to import LNG and set up LNG terminals in the country, it involves India's leading oil and natural gas industry players. Petronet's promoters are GAIL India Ltd, Oil and Natural Gas Corporation (ONGC), IndianOil Corporation and Bharat Petroleum Corporation.