GAIL India Ltd, the nation’s biggest gas company, on Tuesday reported 8.5 percent drop in September quarter net profit after losses on gas marketing offset gain made in the gas transportation business. Consolidated net profit of Rs 1,068.16 crore, or Rs 2.47 per share, in July-September is compared with Rs 1,167.58 crore, or Rs 2.59 a share, net profit in the year-ago period, GAIL said in a filing to stock exchanges.

Turnover slipped 23.7 percent to Rs 14,104.80 crore largely due to lower gas prices during the quarter. GAIL reported a pre-tax loss of Rs 334.55 crore on its natural gas marketing business as the pandemic impacted demand. The loss was however lower than Rs 614.06 crore pre-tax loss in April-June. The business had Rs 241.72 crore of pre-tax profit in July-September 2019.

The firm which owns most of the nation’s cross-country gas pipeline network saw its pre-tax profit from the gas transportation business rise 27 percent to Rs 1,021.18 crore in the second quarter of the current fiscal. With the resumption of economic activity bringing back demand, the petrochemical business clocked a pre-tax profit of Rs 176.31 crore as compared to a loss of Rs 82.32 crore in the year-ago period and Rs 154.43 crore in June quarter of the current fiscal.

”The COVID-19 pandemic globally and in India has impacted business in general and caused a slowdown of economic activity,” GAIL said. The firm said its physical performance has improved as compared to the previous (April-June) quarter and reached almost normal levels.

”The group has assessed the possible impact of COVID-19 in preparation of financial results based on the internal and external sources of information and expects no significant impact on the continuity of the business on a long term basis, the useful life of the assets and overall financial position of the group,” it said.