Shares of Oil India rose by nearly 6% on November 6 after the company reported a massive 464% jump in net profit for Q2. The state-run company posted a net profit of Rs 2,069 crore for the quarter, a big leap from Rs 640 crore in the same period last year. Despite this, the company’s revenue declined by 8% year-on-year to Rs 8,136 crore.
Analysts from Motilal Oswal and Kotak Institutional Equities had estimated net profit figures between Rs 1,667.7 crore and Rs 2,123.2 crore, with revenue expectations ranging from Rs 5,587.2 crore to Rs 5,977 crore, indicating Oil India’s profit growth exceeded projections.
On a quarter-to-quarter basis, Oil India’s net profit climbed 25% from the previous quarter’s Rs 1,834 crore, although revenue from operations fell by 1.6% to Rs 5,246.2 crore. However, EBITDA dropped 11.5% sequentially, with margins narrowing from 46.3% to 41.6%.
The company declared a 30% interim dividend, translating to Rs 3 per share with a face value of Rs 10, and a record date set for November 15.
Oil India also presented updates on two new initiatives for the promotion of the CBG projects. These are: Hindustan Waste Treatment and jointly with GPS Renewables and Bharat Petroleum Corporation Limited. Drilling is expected to begin in Nagaland under the Open Acreage Licensing Policy, OALP, with active drilling in 30 blocks across the country.
Shares of Oil India traded 5.8% higher at Rs 524.55 on NSE at 10:39 am. The stock has given stellar return of nearly 107% this year so far against 10% rise in the Nifty index. In the last one year, it rose by 153% doubling investors’ wealth, while Nifty rose 23% during the same period.
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Source: Moneycontrol
News Desk
