Oil India Ltd has reported a 9.45% increase in net profit for the first quarter of the current fiscal. This was possible due to higher crude oil and natural gas price realisation (exchange rate benefit) and increase in interest income.

During the quarter, subsidy to oil marketing companies increased by 13.19% to INR 2,015.52 crore, from INR 1,780.65 crore during the corresponding period last year. The subsidy has affected the net profit by INR 1,137.72 crore.

The rupee/dollar exchange rate has increased by 21% from INR 44.71 to INR 54.10. This has impacted revenue from both crude oil and natural gas, resulting in additional revenue of INR 374 crore and INR 38 crore, respectively. Gross realisation from crude has gone down to USD 109.78 per barrel from USD 116.32 per barrel and net realisation after subsidy has decreased to USD 53.85 per barrel from USD 59.55 per barrel. However, due to increase in exchange rate, the net realisation has increased to INR 2,913.29 per barrel from INR 2,662.48 per barrel, up 9.42%.

Turnover for the quarter under review was INR 2,439.63 crore compared with INR 2,254.42 crore during the corresponding quarter last year, an increase of 8.22%. The increase in turnover is mainly due to increase in crude oil sale by INR 108.30 crore, natural gas by INR 18.75 crore, LPG by INR 23.05 crore and gas subsidy by INR 23.47 crore.

Source - Hindu

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