Petronet announced good profits for the September quarter. The company is the India’s largest importer of liquefied natural gas. It reported a 91% growth in net profit at Rs.1,089 crore compared to Rs.572.89 crore net profit in Sep-18 quarter. However, the revenue from operations slipped by about 12% to Rs.9,361.18 crore.

One of the reasons for the sharp rise in profits was that the company opted to exercise the option of shifting to the lower tax rate of 25.17% offered by the government in September this year. Accordingly, deferred tax liabilities as on June 30, 2019 and the estimate of tax expense for the June quarter have been re-calculated and the impact of Rs 376 crore on DTL and Rs 70 crore pertaining to previous quarter have been recognised in the current quarter. This was one of the reasons for the sharp rise in net profits. However, this is a one-off benefit although the company will benefit from lower tax incidence in the coming quarters also.