 "Oil India Q2 results: Net profit rises multi-fold to Rs 2,016 crore")
In the second quarter (July-September) of FY25 (2024-25), state-owned Oil India Limited (OIL) saw consolidated net profit attributable to the owners of the company rise 3.79 times. Net profit more than tripled to Rs 2,016.2 crore, up from Rs 420.6 crore in the corresponding period of FY24. Sequentially, the net profit rose 6.91 per cent from Rs 1,885.78 crore recorded in Q4 FY23.
The sharp rise in profit came on a low base, as the national oil exploration and production company had registered a Rs 2,362.72 crore expense in the form of a service tax/GST on royalty in Q2 FY24. This exceptional item had previously dragged down profit to an abnormal level, which has now been corrected, sources said.
Oil India's revenue from operations in the latest quarter dwindled by 7.7 per cent to Rs 8,135.9 crore, down from Rs 8,816.47 crore in Q2 FY24. Meanwhile, total expenses remained nearly steady at Rs 4,069 crore. Pending adjudication of the matter, the service tax/GST paid under protest has been claimed as an allowable deduction under the Income Tax Act, 1961, the company stated.
The latest drop in revenue is primarily attributed to lower earnings across all major sectors. Specifically, revenue from petroleum products dipped 11.8 per cent to Rs 5,197.3 crore, down from Rs 5,892.7 crore in Q2 FY24. Similarly, the crude oil portfolio registered an 8.99 per cent decline in profit to Rs 3,978.8 crore, while the natural gas portfolio registered a 0.42 per cent decrease to Rs 1,327.37 crore.
Earlier this year, the finance ministry granted Maharatna status to Oil India, making it the 13th such central public sector undertaking in the country. The Maharatna tag means Oil India now has the financial autonomy to invest up to Rs 1,000 crore without seeking clearance from the government.
The Oil India board on Tuesday also approved the formation of three joint venture companies. Two of these, Hindustan Waste Treatment and GPS Renewables Pvt Ltd, will undertake initiatives for establishing compressed biogas (CBG) projects, with equity holding in a 50:50 ratio. A third joint venture with oil marketing company Bharat Petroleum Corporation Limited (BPCL) will execute City Gas Distribution (CGD) projects in Arunachal Pradesh, with equal equity shareholding. All ventures are subject to approval by the Department of Investment and Public Asset Management.
The board also approved an interim dividend of Rs 3 per share for FY25, to be paid on or before December 4. Oil India Limited's shares rose 4.81 per cent in intraday trading, closing at Rs 495 apiece on the BSE.