GAIL (India) Limited has accounted a fall of 27% in its net profit at Rs 656 crore for the first quarter ending June 30, 2009.

However, its turnover rose by 5% to Rs 6,021 crore from Rs 5,731 crore in the same period last fiscal.

Mr. UD Choubey, GAIL CMD told that there was some good and bad news in the quarter passed by.

There was an increase of around 14% in gas transmission.

He added that GAIL transmitted 97 units of gas per day, as compared to 84 units a day in the same quarter last fiscal. At the same time, gas trading surged marginally from 79 units to 80 units.

The bad news was a significant fall in polymer costs, which linked with liquid fuel resulted in a hit of Rs 556 crore. The total negative impact of several sections was Rs 917 crore, on the other hand the positive impact was Rs 552 crore. Therefore, the net negative impact was Rs 365 crore.

The subsidy load also fell by almost Rs 400 crore.

On asked how the KG gas distribution affected its numbers, Mr. Choubey told that the gas started sometime in the month of April and prior to that the firm was transmitting about 80-82 units, which presently has climbed to around 110 units per day.

Shares of GAIL Ltd on Friday closed at Rs 352.20, up 1.92% or Rs 6.65 on BSE. Total volume of shares traded was 422,897.