Oil India Q1 results: PAT declines 9% to Rs 1,467 cr on higher expenses

State-run explorer Oil India reported a smaller-than-expected quarterly profit on Thursday, hurt by higher expenses.

Its profit fell 9 per cent year-on-year to Rs 1,467 crore (about $175 million) in the three months ended June 30, falling behind analysts' predicted profit of Rs 1,687 crore, per LSEG data.

Oil India, which operates exploration and production assets mostly in the northeastern part of the country, said its total expenses rose nearly 40 per cent to Rs 4,026 crore as its excise duty costs surged over four-fold, which offset the impact of a 26 per cent rise in quarterly revenue to Rs 5,840 crore.

 

India hiked windfall tax - a higher tax levied on specific industries when they gain a sudden boost to profits - on petroleum crude thrice in the quarter.

The tax imposition started in July 2022 by the Indian government and was aimed at boosting local supply of fuels to meet rising demand and to target refiners who were boosting product exports to gain from higher overseas margins.

Fuel demand in the world's third-largest oil importer and consumer, India, remained strong during April-June, data from oil ministry showed.

Peer Oil and Natural Gas reported a first-quarter profit beat earlier this week.