Oil India Q1 results: Profit rises 3.7% as petroleum product revenue slides

Lower expenses helped oil explorer register profit in Q1 FY24

In the first quarter of FY24 (April-June), public sector company Oil India Limited (OIL) saw its consolidated net profit rise by 3.7 per cent to Rs 1,613.4 crore, up from Rs 1,555.5 crore in the corresponding period of FY23. Sequentially, the net profit fell by 9.7 per cent from Rs 1,788.3 crore recorded in Q4 FY23.

In the latest quarter, the revenue from operations of the national oil exploration and production company dwindled by 22 per cent to Rs 4,644 crore, compared to Rs 5,964 crore in the same quarter of the previous year. However, a 26 per cent fall in expenses helped the company register an overall rise in profits.

 

This drop in revenue is mainly attributed to lower earnings across all major sectors. Specifically, the revenue from petroleum products dipped by 28.7 per cent to Rs 1,503 crore in Q1 FY24, down from Rs 4,722 crore in the preceding year. However, revenue from the natural gas portfolio registered an 8 per cent rise in profit, reaching Rs 1,113.1 crore from Rs 1,030.3 crore in Q1 FY23.

Revenue from the much smaller liquefied petroleum gas (LPG) and renewable energy businesses increased, while that from pipeline transportation fell. As of June 31, OIL held assets worth Rs 56,638 crore.

Last week, the Finance Ministry conferred Maharatna status on OIL, making it the 13th such central public sector undertaking in the country. The Maharatna tag means that OIL will now have financial autonomy to invest up to Rs 1,000 crore without seeking clearance from the government.

Oil India Limited's shares closed 0.42 per cent up at Rs 273.60 apiece on the BSE.