Further reduction in APM gas allocation for compressors
Management noted that APM gas allocation for transmission compressors has fallen from 0.6 to 0.4 MMSCMD and is expected to decline further, increasing fuel costs.
GAIL / Q1-FY24 / risks
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GAIL (India) · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
medium
Petrochemical segment may not break even in FY24
Despite improving volumes, weak polymer prices and high gas costs mean the petrochemical segment may remain loss-making; breakeven requires LNG prices below $10/MMBtu.
Delayed tariff revision from PNGRB
GAIL's representation for higher integrated tariff (submitted INR 68.57 vs approved INR 58.61) faces a hearing only in November 2023, delaying potential revenue upside.
One-off costs in transmission segment may recur
Q1 included INR 233 crore of one-offs (costly gas and arbitration provision); while management says these won't repeat, similar items could arise from volatile gas prices.