Oil India Q1 Results: Profit rose by 3.7% while revenue of petroleum products fell

Public sector company Oil India Limited (OIL) reported its consolidated net profit increase by 3.7% to Rs 1,613.4 crore in the first quarter of FY24 (April-June), up from Rs 1,555.5 crore in the same period of FY23. Sequentially, the net profit decreased from Rs 1,788.3 crore in Q4 FY23 by 9.7%.

The national oil exploration and production company's operating revenue decreased by 22% to Rs 4,644 crore in the most recent quarter from Rs 5,964 crore in the corresponding quarter of the previous year. However, a 26% decrease in expenditures allowed the business to record an increase in earnings overall.

Lower earnings across all of the major sectors are primarily responsible for this decline in revenue. The revenue from petroleum products specifically fell by 28.7% to Rs 1,503 crore in Q1 FY24 from Rs 4,722 crore the year before. However, revenue from the natural gas portfolio registered an 8% increase in profit, going from Rs. 1,030.3 crore in Q1 FY23 to Rs. 1,113.1 crore.

In contrast to pipeline transportation, which reported a decline in revenue, the considerably smaller liquefied petroleum gas (LPG) and renewable energy businesses reported growth. OIL holds assets of Rs 56,638 crore as of June 31.

OIL became the thirteenth such central public sector undertaking in the nation last week after the Finance Ministry granted it Maharatna status. With the Maharatna tag, OIL will now have the financial autonomy to make investments up to Rs 1,000 crore without seeking approval from the government.

Content source: Media reports