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Informist, Thursday, Aug 8, 2024

--Oil India Apr-Jun net profit 14.67 bln rupees

--Analysts saw Oil India Apr-Jun net profit 17.32 bln rupees

--Oil India Apr-Jun net profit 14.67 bln rupees vs 16.13 bln

--Oil India Apr-Jun revenue 58.40 bln rupees vs 46.45 bln

By Rajesh Gajra

MUMBAI – Upstream crude oil and natural gas explorer and producer Oil India Ltd today reported a 27.7% sequential fall in its net profit to 14.67 bln rupees in the quarter ended June as the crude oil segment recorded stagnant revenue growth and a decline in operating profit. A fall in other income, and rise in tax expenses also contributed to the sequential fall in its net profit. The company's net profit also missed the Street's estimate of 17.32 bln rupees.

The topline was up by just 1.4% on quarter to 58.40 bln rupees, mainly due to a sluggish 0.8% growth in revenue from crude oil at 42.08 bln rupees. Revenue from pipeline transportation was down sharply by 25% on quarter to 1.25 bln rupees in Apr-Jun.

Aiding the revenue growth of Oil India was a 6.5% sequential increase in revenue from natural gas to 14.22 bln rupees. The reported revenue was above analysts' average estimate of 57.93 bln rupees.

The company's earnings before interest and tax, or EBIT, fell 22% sequentially to 19.75 bln rupees in Apr-Jun as the crude oil segment's EBIT declined 8.2% to 16.03 bln rupees. The EBIT loss in the pipeline transmission segment expanded to 238 mln rupees in Apr-Jun from 68 mln rupees in the previous quarter. The company's natural gas segment's EBIT, which rose nearly 12% on quarter to 766 mln rupees, acted as a buffer to the overall EBIT fall in the June quarter.

Contributing to the overall EBIT fall was a 121% sequential surge in excise duty costs to 5.08 bln rupees, which made up for 12.6% of the total expenses. Other statutory levies of 14.34 bln rupees, which made up for 36% of total expenses, also increased 1.6% on quarter, and dragged down the operational profit.

The nearly 28% sequential fall in the net profit of the company largely tracked the EBIT fall of 22% in the June quarter. But an 81% on-quarter fall in other income to 1.62 bln rupees, and 4.1% increase in finance costs to 1.97 bln rupees and 2.5% in tax costs to 5.08 bln rupees further worsened the impact on the company's bottomline.

Compared to the same quarter a year ago, Oil India's net profit declined 9.1%, while EBIT was up nearly 11% and revenue rose 25.7%.

The on-year EBIT growth to 19.75 bln rupees was on account of a 23.7% jump in EBIT from the natural gas segment to 766 mln rupees and a 6.6% increase in the same from the crude oil segment to 16.03 bln rupees.

Today, shares of Oil India ended at 612.85 rupees on the National Stock Exchange, down 0.80%.  The company declared its earnings after market hours.  End

Edited by Tanima Banerjee

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