Operator: Ladies and gentlemen, good day and welcome to GAIL Limited Q2 FY2027 Earnings Conference Call hosted by PhillipCapital. As a reminder, all participants will be in a listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I would now hand the conference over to Mr. Nitin Tiwari from PhillipCapital. Thank you, and over to you, sir.
Nitin Tiwari: Thank you, Muskan. Good day, ladies and gentlemen. Best wishes in advance for upcoming festive season. On behalf of PhillipCapital India Limited, I welcome everyone to GAIL Limited's second quarter FY2027 earnings call. Today, we have the pleasure of having with us the senior management of GAIL, led by Director Finance Shri S.K. Sinha. I will now hand over the floor to the management for their opening remarks, which shall be followed by a question-and-answer session. Over to you, sir.
S.K. Sinha: Thank you, Nitin. Good evening, everyone. It is always a pleasure to talk to the investors and analysts, and we are deeply thankful for your continued trust and engagement with GAIL. The company has declared its result for the Q2 FY2026-2027 today, which you must have seen by now. I will talk about highlights, business overview, outlook, status of capital expenditure, and then we will take your questions. I will start with key business highlights for the quarter. Number 1, GAIL won prestigious award, PNGRB Excellence, in the category of Gas Transporter of the Year and Health and Safety. GAIL recorded its highest-ever natural gas transmission of around 148 MMSCMD on 21 September 2026. Q2 of FY2026-2027 was another quarter of robust and vigilant performance, even as the challenging times continue.
S.K. Sinha: The West Asia crisis has now gone on for over 8 months, and the company volume from the Middle East remained disturbed. This was partly offset through portfolio flexibility and spot sourcing. GAIL's diversified portfolio again proved to be a key strength in navigating the quarter effectively. Gas price continued to be volatile and quite high. You see around $30 to $32 per MMBtu. Throughout this crisis, our teams have been resilient and agile and have kept the wheels in motion. Even as the times remained challenging, as a company, our prime focus has been to meet our customer requirements so that they are not left dry run. Our trading arm in Singapore, GGSPL, supported GAIL in the sourcing spot volume from time to time, and we could prioritize supply to our customers. The company continued to focus on operational efficiency and on creating sustainable value for our stakeholder.
S.K. Sinha: PBT and PAT during the quarter stood at INR 5,838 crore and INR 4,650 crore respectively, almost in line with the previous quarter. For H1 this financial year, PBT and PAT stood at INR 11,611 crore and INR 8,943 crore respectively, which is a growth of more than 116% as compared to the H1 of the previous financial year. Moving to the segment-wise, starting from the natural gas transmission. Natural gas transmission volume for Q2 FY27 stood at 130.10 MMSCMD, as against 122.36 MMSCMD in the previous quarter, an increase of about 6.3%, in line with the recovery in the gas consumption in the country. During the quarter, we also recorded our highest-ever transmission volume of 147.55 MMSCMD on 21 September 2026. Overall natural gas transmission volume for H1 FY27 stood at 126.25 MMSCMD.
S.K. Sinha: We expect that the natural gas transmission volume for FY26-27 should be around 126, 127 MMSCMD in the prevailing circumstances. Moving to the gas marketing, GAIL sourced 18 spot cargo during the Q2 FY27, as against 8 cargo during Q1 FY27. All the cargo were sourced through the GGSPL. Our gas marketing volume for Q2 FY27 stood at 97.23 MMSCMD, as against 93.82 MMSCMD during Q1 FY27, an increase of about 3.6%. Gas consumption in the country was seen returning to the levels prevailing before the West Asia crisis. During Q2 FY27, the company earned a natural gas marketing margin of INR 3,148 crore at PBT level, as against INR 3,353 crore for Q1 FY27. The Henry Hub linked portfolio continued to generate higher return on account of sustained high crude prices, whereas gains from the JCC 9-month linked sourcing moderated.
S.K. Sinha: In view of above, we update our gas marketing margin guidance to the around INR 9,000 to INR 9,500 crore at PBT level for FY26-27. The range assumed continued Brent volatility and accounts for the disturbed long-term supply during the year. Moving to the polymer business. Polymer production during the quarter stood at 204 TMT, as against 51 TMT in Q1 FY27. Due to the scale of operation, the segment remained around breakeven level during the quarter and is expected to be at the same level during FY27. Moving to the LHC and LPG transmission. In the LPG transmission segment, volume improved by 5% and stood at 1,130 TMT, as against 1,077 TMT in Q1 FY27, primarily due to improvement in volume from flow in VSPL. Overall capacity utilization stood at around 98% for the quarter.
S.K. Sinha: In the LHC segment, production increased by 10% to 256 TMT from 232 TMT in Q1 FY27. In view of ongoing crisis, we restarted operation at our Gandhar plant, and LHC production of 32 TMT was achieved during Q2 FY26-27. The LHC segment generated a PBT of INR 442 crore during Q2 FY27, as against INR 772 crore in Q1 FY27, primarily on account of lower price realization by INR 18,000 per metric ton. Moving to the CGD and GAIL Gas business. We have already received PNGRB nod for transfer of GAIL six GAIL to the GAIL Gas to have a retail-focused approach. Thereafter, GAIL Gas Limited will be listed for which necessary action is underway. These six CGD have 219 CNG stations and around 3 lakh billed DPNG connections.
S.K. Sinha: GAIL Gas, which currently operates 16 GA directly and 9 GA through its JV, has a network of 593 CNG stations, over 8 lakh DPNG connections. Quarterly profit of GAIL Gas increased by around 50%. GAIL Gas marketed around 7 MMSCMD volume during H1 2026-27. Moving to the ongoing projects and CapEx. During Q2 FY27, GAIL incurred a capital outlay of INR 1,425 crore for H1 FY27. The cumulative CapEx stood at INR 7,600 crore. Around INR 12,900 crore is expected to be incurred toward the CapEx during the current financial year. This sustained investment underscores our commitment to strengthen gas infrastructure, enhancing downstream capabilities, advancing clean energy projects, and supporting India's long-term energy transition and energy security objectives. Moving to the segment-wise CapEx program. Pipeline projects, GAIL, JHBDPL, remaining section, KKMBPL phase 2, Gurdaspur-Jammu pipeline, and C2/C3 pipeline are scheduled for completion in the current financial year.
S.K. Sinha: Vijaipur-Bina pipeline, DUPL-DPPL capacity augmentation are scheduled for completion in the next financial year. JLPL LPG pipeline capacity augmentation is scheduled to be completed in FY28-29. Petrochemicals project. The 1,250 KTA PTA plant at GMPL is in the advanced stage of commissioning and should commence commercial production very shortly. The 500 KTA PDH-PP plant is scheduled to be commissioned during the next financial year. CBG GOBARdhan scheme. The company has 1 operational CBG plant at Ranchi, and others are under construction. Company has registered 10 CBG plants on GOBARdhan portal, including 1 operational, 6 under construction, and 3 under approval. It is expected to receive capital assistance of around INR 100 crore for 5 under-construction CBG plants under the GOBARdhan scheme. Konkan LNG Limited.
S.K. Sinha: The company expects the ambient heating system to be partly commissioned by March 2027 and to be fully completed by September 2027, post which full 5 MMTPA can be utilized for full year and around 80 cargoes can be served annually. Moving to the renewables segment. GAIL remains committed to achieve its net zero target by year 2035 for a scope 1 and a scope 2 emissions. We have 155 megawatts of renewable energy portfolio, which includes 180 megawatts wind and rest is solar. Additional 908 megawatt renewable power capacity under construction, along with 572 megawatts of the battery energy storage system. With completion of these projects, GAIL will have a renewable energy portfolio of around 1 GW. That concludes my overview of the quarter performance, segment outlook, and key projects. Over to you, Nitin.
Operator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Probal Sen from ICICI Securities. Please go ahead.
Probal Sen: Thank you. Very good afternoon, sir, and many congratulations for a very strong set of numbers. Just wanted to understand your thoughts on where this strong gas demand is coming from, in the sense that despite the kind of strength we have seen in LNG prices. If you can just give us some sense of which segments, consuming segments are actually seeing traction? Is it more a function of organic demand or also a continued switchover from other alternate liquid fuels, which have also obviously seen price increases over the last three or four months? What are your thoughts on this? That was my first question.
S.K. Sinha: Thank you, Pavel ji. As you know, we have major five segments where gas consumption is happening. Number one, fertilizer. Second, power. Third, CGD. Fourth, industry. Fifth, other consumers. So during Q2, power sector and fertilizer sector consumed more gas as compared to the previous quarter. So, consumption of power sector has increased from 10% to 12% during Q2 FY27. Similarly, in the fertilizer sector also, gas consumption has increased from 32% to 33%.
Probal Sen: Okay. And this, sir, this percentage increases versus Q1 or on a year-on-year level, sir?
S.K. Sinha: Q2.
Anjana Sanjeeva: Q2 versus Q1.
S.K. Sinha: Q2 versus Q1.
Probal Sen: Okay, so on a QoQ sequentially, that is the kind of increase we are seeing?
S.K. Sinha: Yes.
Probal Sen: Got it. The second question was, sir, of course, around the trading business. Obviously, I think this is a question you would have been asked at Q1 itself that the guidance remains fairly conservative. Now, if I look at the run rate that is there for the first couple of quarters, we are already sitting on somewhere around INR 6,500 crore or so of EBITDA. One should again sort of assume that this is sort of the INR 9,000 crore number that you just mentioned. This is again sort of the minimum level that you hope to achieve. If the current situation were to persist, there is a reasonable chance of upside risk to these estimates. Is that a fair way to look at it, sir?
S.K. Sinha: Basically, based on the internal calculation, we estimated around INR 9,000 to INR 9,500 crores based on all the workings and all the gas supply will be happened during Q3 and Q4. Though at current level, spot price is hovering around $32, and our HH price is around $10. We are mixing the gas with the spot as well as HH and other portfolio, and we are supplying gas to the customer. During Q3, I think our nine-month versus three-month, what we currently gaining more margins, this will not available during Q3 and Q4.
Anjana Sanjeeva: Further to add to what our Director Finance has said, Pavel.
Anjana Sanjeeva: Further to add to what our Director Finance has said, this is a reasonable estimation of our marketing PBT which we have estimated. The INR 9,000 to INR 9,500 crores is the reasonable band based on current situation which we could estimate. We are not saying that it is whether optimistic or pessimistic, but it is a reasonable estimation of our marketing PBT.
Probal Sen: Got it, ma'am. One last question, if I may. In terms of the transmission segment, sir, as I did mention that we reached an all-time high of, I think, somewhere around 147 MMSCMD, if I am not mistaken. Just your thoughts on-
S.K. Sinha: Around 148 MMSCMD.
Anjana Sanjeeva: You are right.
Probal Sen: 148, sir, 148. What has been the October run rate, sir, if one can ask?
S.K. Sinha: I have already told you that during the current year, it will around 126, 127 MMSCMD on yearly average basis. Next year, it will be around 134, 135 MMSCMD. As on particular date, this was 148, but not regular basis.
S.K. Sinha: On average basis, it is around 126, 127.
Probal Sen: That is what we should be working with for the H2 of the year. Roughly.
S.K. Sinha: Yes.
Probal Sen: Got it, sir. If I have more questions, I will come back in the queue. Thank you so much, and all the best.
S.K. Sinha: Yeah.
Operator: Thank you. A reminder to all the participants, you may press star and 1 to ask question. The next question is from the line of Maulik Patel from Equirus Securities Private Limited. Please go ahead.
Maulik Patel: Yeah. Hi. Thanks for the opportunity. Just two questions. One on this Petchem expansion of PDH plant. Where are we in terms of timeline and in terms of commissioning? There has been slight delay in overall project progress. That is the first question. Second question is related to overall LPG business. Obviously, the volume has been flat, but are you getting more domestic gas, APM gas to manufacture, to produce the LPG? Because there has been a shortage in the past, which is currently not there. But has there been any discussion related to that with ministry?
S.K. Sinha: Coming to your first question, PDH plant will be commissioned during the next year. I think as per schedule completion, it is 30 June 2027. This may take more six months plus-minus time schedules. Certainly, this plant will be commissioned during the year 2027-2028. Second question regarding the LPG. We are getting around 1.9 MMSCMD domestic gas for production of LPG and other liquid hydrocarbons. We are fully allocated domestic gas for the production of LPG and other products.
Maulik Patel: Got it. Do you get any NWG gas for that or the LPG, or it is only APM?
Anjana Sanjeeva: 0.7 is NWG, and 1.12 is APM gas that we are getting. Based on the gas profile, which we are getting domestic gas profile, this is the maximum we can produce. We have restarted our Gandhar plant as well to meet the country's requirement, and this is the maximum production level based on the domestic gas profile that we are getting from ONGC.
Maulik Patel: Got it, madam.
S.K. Sinha: We are extracting C3, C4+.
Maulik Patel: Yes.
S.K. Sinha: Right now, whatever molecule available in the gas, we all extracting from the natural gas. Based on the molecule available, we are consuming gas around 1.9 MMSCMD.
Maulik Patel: Got it. Out of that, 1.1 or 1.2 is APM, and remaining is NWG.
S.K. Sinha: Yes.
Maulik Patel: Okay. Got it, sir. Thank you. Thank you very much.
Operator: Thank you. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead.
Amit Murarka: Yeah. Hi. Thanks for the opportunity. Just on the trading segment, while this year you are raising the guidance now to INR 9,000 to INR 9,500 crore, as you said, will you raise it also for next year, or how is the guidance for that?
S.K. Sinha: Next year, I think the situation will be normal. So our normal guidance around INR 4,500 to INR 5,000 crore during the next year.
Amit Murarka: So as of now, you maintain that then?
S.K. Sinha: Yes.
Amit Murarka: Sure. On the petchem business, you have reported a small positive EBITDA here. Just wanted to know what is the source of gas and the cost of gas in the quarter for petchem?
S.K. Sinha: Basically, we have gas from different sources. We have HH gas, we have JCC linked gas, we have spot gas. We are providing around 40% to 50% HH gas and 40% to 50% spot gas. Based on these mix, we are able to manage the EBITDA positive in Q2 FY27.
Amit Murarka: This mix will continue, right?
S.K. Sinha: Yes.
Amit Murarka: Got it. What was the average cost that came in Q2 for the gas?
S.K. Sinha: Around 13.6.
Amit Murarka: 13.6. Even though you said that 40, 50 was spot LNG, but the average was 13.6. I mean, HH was $10, right? As you mentioned that the delivered cost is $10 for HH LNG.
S.K. Sinha: 8.8, around 9.
Amit Murarka: Nine.
S.K. Sinha: And-
Amit Murarka: Okay
S.K. Sinha: spot is ranging from $20 to $30, $32.
Anjana Sanjeeva: We are allocating gas to petrochemicals from our existing portfolio, which includes JCC, some midterm gas, and HH as well. It is based on the availability of gas in our portfolio. We are allocating it to our Petchem segment.
Amit Murarka: Understood. Also, the transmission OPEX has risen a bit in the quarter. Is it a one-off over there, or is it a normal increase due to cost inflation that you are seeing?
S.K. Sinha: Just hold on. Yeah. You are talking about Q2?
Amit Murarka: Yeah, the second quarter.
Anjana Sanjeeva: It is basically the fuel cost because the transmission volume has increased, so we need to run our compressors to push the gas. It is basically the fuel cost.
Amit Murarka: Sure. Okay, that is it for me. Thank you.
Operator: Thank you. The next question is from the line of Nitin Tiwari from PhillipCapital. Please go ahead.
Nitin Tiwari: Yeah. Hi, sir. Good evening. There were a few questions from my end. Sir, we are seeing lot of reports about increase in logistics cost as far as fuel sourcing is concerned. Are we facing similar challenges in increasing freight cost for LNG tankers as well? Is there any shortage that we are seeing for LNG tanker availability while we are scheduling our cargoes?
Anjana Sanjeeva: Can you come again, Nitin, please?
Nitin Tiwari: Yeah. Ma'am, I was asking that, are we seeing any challenges with respect to increase in freight cost or availability of LNG tankers when we schedule our cargoes?
Anjana Sanjeeva: There is no shortage. No shortage. We have six cargoes on our long-term portfolio, which are transporting our LNG from US. Further, we are getting ship cargo vessel also there.
Nitin Tiwari: So ma'am, the spot cargoes that we are sourcing, I mean, are those on FOB or DES basis? Like, how the shipping taken care of in those spot cargo cases?
Anjana Sanjeeva: They are on DES basis.
S.K. Sinha: Basically, sometime we are optimizing our shipping portfolio through FOB deals.
Anjana Sanjeeva: The spot cargo sourcing is on delivered basis, Nitin, if that is what you are referring to.
Nitin Tiwari: All right, ma'am. That is helpful. Secondly, also wanted to understand what is the prognosis for petrochemical plant at Pata? I mean, we have been facing challenges with its profitability, and I understand that these are somewhat challenging environment. When things normalize, let me know what kind of a normalized profitability we can expect from this unit, and when can we foresee that happening, if you can throw some light on that?
S.K. Sinha: Currently, the sales realization of petchem is around INR 136,000 to INR 137,000 per metric ton. We are supplying gas around $14. So based on $14 and INR 140,000 price, we are achieving at breakeven. If during the next year's price drastically come down to around INR 90,000 to INR 95,000 per metric ton, then certainly gas price will also reduce from the existing level to $9 to $10. So, I think based on the INR 90,000 price and $9 to $10 input cost, we will achieve breakeven.
Nitin Tiwari: Understood, sir. Thanks for that. I will get back into and let others ask questions. Sure, sir.
Operator: Thank you. The next question is from the line of Sabri Hazarika from Emkay Global Financial Services. Please go ahead.
Sabri Hazarika: Yeah, good afternoon, and congratulations on good set of numbers. My question is pertaining to this 190 MMSCM PLL volumes. Was there a financial benefit from that during the quarter, which was part of the marketing earnings?
S.K. Sinha: Can you repeat your question, Mr. Sabri?
Sabri Hazarika: In this notes to account, you have mentioned 190 MMSCM of supply you received from Petronet LNG, I think which is some of the Qatar volumes which may have come during that period. Was there a financial impact of the same on the marketing volume, marketing earnings?
S.K. Sinha: Basically
Anjana Sanjeeva: Sabri, we got, though QatarEnergy continues to be under force majeure, they supplied some cargoes. One such cargo was received in September, and we have received three cargoes in October, right? These cargoes are pertaining to long-term portfolio, which are supplied back-to-back to fertilizer.
Sabri Hazarika: Okay.
Anjana Sanjeeva: No financial implication. We are getting normal margins on this, which we used to get earlier.
Sabri Hazarika: Okay, so there is no one-offs or anything of that sort in the marketing numbers. It is basically the JCC versus current Brent spread and HH versus oil link plus spot, that is what is driving the Q2 numbers also, right?
Anjana Sanjeeva: That's right. In addition to what you have mentioned, we have got some margins on our spot sourcing as well. We continued sourcing spot, and the spot was rising, we were buying spot. So, we got some leverage on that account as well.
Sabri Hazarika: Got it. Just a granular detail on this marketing guidance for next year. You were at INR 40, 45 billion earlier, so now we are at INR 45 to 50 billion. Is that right?
S.K. Sinha: Yes, we expect that during the next year, the things will be normalized. During the current year, initial guidance was INR 4,500 to 5,000. During the next year, it will be around INR 4,500 to 5,000 crores.
Sabri Hazarika: This is on what level of volumes?
S.K. Sinha: At current level, 105 MMSCMD, around 100 plus MMSCMD for the gas marketing.
Sabri Hazarika: 100 plus MMSCMD, INR 4,500 to INR 5,000 crores next year. Thank you so much, and all the best.
Operator: Thank you. The next question is from the line of Archit from Axis Capital. Please go ahead.
[Analyst] (Axis Capital): Hi, is my audio audible?
Operator: Yes, sir.
[Analyst] (Axis Capital): Sir, as GAIL Gas IPO is coming, how do you see its volumes evolve over the next 3 to 5 years? How many CNG stations are you planning to set up over this period?
S.K. Sinha: Basically, right now we are having six CGD, six geographical areas, and I am going to transfer to GAIL Gas because IPO of GAIL Gas will come during the next year, 2027, 2028. Whatever increase in the CNG station or PNG connections will be done by GAIL Gas for the next year.
[Analyst] (Axis Capital): I was asking.
S.K. Sinha: Just for the next 2 years, GAIL Gas targets to add around 275 new CNG stations and about 3.7 lakh new DPNG connections.
[Analyst] (Axis Capital): Got it. And sir, can you give me the FY26 overall volumes and volume breakup in MMSCMD for CNG, domestic PNG, and industrial PNG for GAIL Gas?
S.K. Sinha: For GAIL Gas, just?
[Analyst] (Axis Capital): Yeah.
S.K. Sinha: 2.39 CNG and PNG for the GAIL Gas for H1. 1.67 CNG, 0.58 industrial, 0.05 commercial, and 0.09 domestic. The total gas volume is 2.39 MMSCMD.
[Analyst] (Axis Capital): Sir, this is for which period?
S.K. Sinha: And for the TTZ, around 1.24, and bulk sales, 3.16. The total, 6.79.
[Analyst] (Axis Capital): This is for FY26, correct?
Anjana Sanjeeva: FY27 H1.
S.K. Sinha: H1.
[Analyst] (Axis Capital): H1. Okay, got it. Thanks.
Operator: Thank you. The next question is from the line of Vikash Jain from CLSA. Please go ahead.
Vikash Jain: Yeah, thanks for taking my question, Sinha Ji and Anjana Ji. My question is about this gas volume increase that we have seen, QOQ basis, of course, great numbers over there also and overall as well. That increase from 122 to 130 MMSCMD roughly. Is there an element of some seasonality over there? Is there a big element of power or what? Is there anything like that which maybe will kind of dry out soon or something like that?
S.K. Sinha: The major consumption happened in the power sectors as well as in CGD and fertilizer.
Vikash Jain: The extra 8, how much roughly came from power?
Anjana Sanjeeva: At the country level, power has consumed around 2 MMSCMD more, and fertilizer consumption increased by around 4.5 MMSCMD during the quarter as compared to previous quarter. In addition to that, petchem plants which were not operational in Q1, they were also started, like C2, C3, OPaL, and our own petchem plant. So there is an increase in consumption in petchem as well by around 3.5. Overall country level, the consumption has increased by around 8.5 MMSCMD as compared to previous quarter.
Vikash Jain: Okay
Anjana Sanjeeva: If we compare it to previous year, we are more or less flat.
Vikash Jain: Fertilizer was simply because they are returning from shutdowns and all.
Anjana Sanjeeva: Yes, that's right.
Vikash Jain: Again, similar could be said about petchem, that they are getting back the volumes. The power element is only about 2 MMSCMD for the country overall, right?
Anjana Sanjeeva: Yes, that is right.
Vikash Jain: Even currently, it will be fair to say that you will be not too far away from these kinds of numbers? I mean, about 128, 129, close to that kind of volume numbers?
Anjana Sanjeeva: For transmission?
Vikash Jain: That is right.
Anjana Sanjeeva: Transmission, we have already said that for current financial year, we will be around 126, 127.
Vikash Jain: Okay. No, okay, fine. So even right now, you are working around the ballpark. That is why that gives you the confidence. So, you are building on that 126, 127 and saying that it will go to 134. That extra 6, 7, you suspect, how would that breakup come from? I mean, how much is coming from city gas and how much from others?
S.K. Sinha: Mostly city gas.
Vikash Jain: So an extra 7 MMSCMD you are expecting from city gas, is it?
S.K. Sinha: Yes.
Anjana Sanjeeva: Refinery volumes, we are expecting to come back because refinery, currently they are consuming around 5 million less from what they used to consume historically. So this refinery volume, 5 MMSCMD will come back. Sir, CGD is growing at a very good pace. Last year, the average consumption of CGD was around 45, which has grown to 55, 54, 55. So the CGD is growing, plus refinery volume will also come back.
Vikash Jain: Okay. And so, even at these high LNG prices, this kind of volume of 128, 129, 130 MMSCMD, you see it sustaining around these kinds of volume, right?
Anjana Sanjeeva: That's right.
S.K. Sinha: Basically, we are not supplying 30, 32 dollar gas. We are supplying based on the mixture of the gas. So we are supplying around
S.K. Sinha: It is called spot gas, which will have
S.K. Sinha: 50% or 60% volume.
Vikash Jain: Okay.
Anjana Sanjeeva: Hope we could answer to your query, Vikas, or
Vikash Jain: Yeah. No, thanks a lot. Thanks a lot. I got my answers. Thank you.
Operator: Thank you. The next question is from the line of Sanjay Mukherji from JP Morgan. Please go ahead.
Sanjay Mukherji: Satishji, Anjana Ji, good evening. Couple of questions from me. On the balance sheet, sir, there is a sharp increase in trade receivables in the H1. Is this just a pricing issue, or is there anything else on the receivable side, sir?
S.K. Sinha: Sir, the pricing issue, basically gas price has increased as compared to the previous quarter. So, within credit collectible has increased drastically around INR 5,000 crore.
Sanjay Mukherji: Correct, sir. There is no delays in payments from any customer as such?
S.K. Sinha: No, no. This is a normal trade receivable.
Sanjay Mukherji: Sure. Second question, sir. Could you update us on the new pipelines that have been commissioned? Are we seeing any incremental gas volumes on, let us say, the Mumbai-Nagpur-Jamshedpur pipeline sections?
S.K. Sinha: Basically, right now we are supplying to the CGD sector in Mumbai, Nagpur, Jamshedpur, and similarly in the Srikakulam-Angul pipeline. But certainly, there is a customer in the Jamshedpur, so we are connecting these customers, and they will consume gas in the coming year.
Sanjay Mukherji: Do you have a sense, sir, how much of customer conversion you can see along the new pipelines?
S.K. Sinha: Around 2 to 3 MMSCMD.
Sanjay Mukherji: I see. Lastly, on the Kochi pipeline, sir, it has been delayed continuously for so many years. I mean, you said it will get completed in this fiscal. What is the confidence around that?
S.K. Sinha: Basically, only 3 to 4 kilometers is left. So we are hopeful that the 3 to 4 kilometer will be laid by March maximum. So all the pipeline, including Jagdishpur-Auraiya, Kochi-Kanjirappally, Mangalore-Bangalore, SAPL, Mumbai, tie-up for Jammu pipeline, all the pipeline will be commissioned during the current year by March maximum.
Sanjay Mukherji: All right. Thank you, Satishji.
S.K. Sinha: Yeah.
Operator: Thank you. A reminder to all the participants, you may press star and one to ask question. As there are no further questions from the participants, I would now hand the conference over to the management for closing comments. Over to you, sir.
S.K. Sinha: Okay, thank you. Thank you, Nitin, and thank you all the analysts and investor fraternity for continuing their trust in GAIL. For any further query, you may reach out our IR team led by Anjana Divya ma'am. I would like to wish everyone a very happy, prosperous, and joyful Diwali. Thank you. Thank you so much.
Nitin Tiwari: Thank you.
Operator: Thank you. On behalf of PhillipCapital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.
