Earnings Review
Oil India Jul-Sept net dips 32% YoY on like-to-like basis
This story was originally published at 22:20 IST on 5 November 2024
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--Oil India Jul-Sept net profit INR 18.34 bln
--Analysts saw Oil India Jul-Sept net profit INR 18.73 bln
--Oil India Jul-Sept net profit INR 18.34 bln vs INR 3.25 bln year ago
--Oil India Jul-Sept revenue INR 55.19 bln vs INR 59.13 bln year ago
--Oil India to pay INR 3 per share interim dividend
--Oil India Apr-Sept net profit INR 33.01 bln vs INR 19.39 bln year ago
--Oil India Apr-Sept revenue INR 113.59 bln vs INR 105.58 bln year ago
--Oil India: To form JV with BPCL for gas distribution project in Arunachal
By Ayushman Mishra and Anand J.C.
MUMBAI - Oil India Ltd. has reported an almost 464% on-year jump in net profit for the September quarter to INR 18.34 billion. However, this is because of an exceptional expense of INR 23.67 billion for goods and service tax on royalty paid towards crude oil and natural gas in the September quarter of last year.
But for this one-time expense, the company's net profit in the year-ago quarter would have been INR 26.88 billion. As a result, the company's net profit for Jul-Sept this year would be 32% lower.
With the matter still pending in court, the company provided INR 2.01 billion towards GST and interest in Jul-Sept. The exceptional expense of INR 23.67 billion shown in last year's September quarter statement represents GST on royalty paid till Mar. 31, 2023. The total amount provided till Sept. 30, 2024 is INR 34.84 billion.
The top line of the upstream gas company dipped 6.7% on year to INR 55.19 billion in the September quarter. The company’s revenue from operations missed analyst estimates of INR 56.58 billion. The other income of Oil India in the September quarter was INR 8.56 billion, up 429% sequentially and 20.6% on year.
The revenue from the crude oil segment in the latest quarter was INR 39.78 billion, down 9% on year. The revenue from the natural gas segment in the latest quarter was INR 13.27 billion, largely unchanged on year. The net profit in Apr-Sept was INR 33.01 billion, up 70.24% on year. The top line in Apr-Sept was INR 113.59 billion, up 7.6% on year.
Oil India's earnings before interest, taxes, depreciation, and amortisation in the September quarter was INR 30.38 billion, 5% lower on year. EBITDA margin in the September quarter was 47.7%, lower than 48.29% in the year-ago period. The company's EBITDA in Apr-Sept was INR 56.67 billion, 3.3% lower on year. EBITDA margin in Apr-Sept was 45.8%, 473 basis points lower on year.
Crude oil price realisation in the latest quarter was $79.33 per barrel, lower than $86.86 per barrel in the same quarter a year ago. Crude oil output in Jul-Sept was 0.875 million tonnes, 4.8% higher on year. Natural gas output was 0.799 billion cubic metres, down 1.4% on year. Crude oil sales in the September quarter were 0.839 million tonnes, down 2% on year while natural gas sales were 0.628 billion cubic metres, largely unchanged on year.
The board of Oil India agreed to form separate joint ventures with Hindustan Waste Treatment Pvt. Ltd. and GPS Renewables Pvt. Ltd. to establish compressed biogas projects. The company will hold a 50% stake in each of the two joint ventures.
The board also approved the formation of a 50:50 joint venture with Bharat Petroleum Corp. Ltd. to execute city gas distribution projects in Arunachal Pradesh State Geographical Area as authorised by the Petroleum and Natural Gas Regulatory Board. The company has announced an interim dividend of INR 3 per share.
On Tuesday, shares of the company closed at INR 495.60 on the National Stock Exchange, up 4.9%. The company declared its earnings after market hours. End
Edited by Vandana Hingorani
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