Shares of Oil India Ltd plunged 4.30% today, trading at ₹406.55, following the release of disappointing Q3 FY25 results on Friday. The company reported a 23.07% year-on-year (YoY) decline in net profit to ₹1,221.80 crore compared to ₹1,584.28 crore in the same quarter last year. The lower-than-expected earnings were largely attributed to reduced crude oil realizations and a fall in revenue.
Key Q3 FY25 Financial Highlights:
- Net Profit: ₹1,221.80 crore, down 23.07% YoY
- Total Income: ₹5,428.29 crore, down 14.15% YoY
- Turnover: ₹5,239.66 crore, down 9.89% YoY
- EBITDA: ₹2,321.34 crore, down 11.19% YoY
- EBITDA Margin: 42.76% vs 41.34% YoY
The company’s crude oil realization dropped 7% sequentially to $73.82 per barrel, against expectations of a 1% decline. Revenue from key segments such as crude oil and natural gas also fell, with crude oil revenue declining 13.18% YoY to ₹3,657.88 crore and natural gas revenue slipping 1.98% YoY to ₹1,382.12 crore.
Segment-wise Revenue:
- Crude oil: ₹3,657.88 crore, down 13.18% YoY
- Natural gas: ₹1,382.12 crore, down 1.98% YoY
- LPG: ₹34.06 crore, down 17.09% YoY
- Pipeline transportation: ₹146.46 crore, up 7.68% YoY
- Renewable energy: ₹19.14 crore, up 31.55% YoY
Dividend Announcement:
The board of directors declared a second interim dividend of ₹7 per share (70% of paid-up capital) for FY25. The total interim dividend declared till Q3 FY25 stands at ₹10 per equity share. The payment will be made by March 8, 2025, with a record date set for February 17, 2025.
Despite the dividend announcement, investor sentiment remains subdued due to the company’s weaker earnings. Oil India’s revenue decline across key segments highlights ongoing challenges within the energy sector, affecting overall market performance.
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