Jindal Drilling and Industries Limited are likely to be in focus after the company announced a favorable arbitration award against Oil and Natural Gas Corporation (ONGC). As per the company’s regulatory filing on April 4, 2025, the Arbitration Panel, constituted under directions of the Hon’ble Supreme Court, has ruled in favor of the company, concluding a long-pending dispute related to directional drilling service charges.
The arbitration award covers a claim of USD 14.77 million (Rs 66.33 crore as of March 31, 2011), which was already shown as receivables in the company’s FY24 audited financial statements. Additionally, Rs 166.75 crore was recorded as Other Financial Liabilities.
Following the tribunal’s award, Jindal Drilling will adjust the Rs 66.33 crore receivable against the liabilities and transfer the remaining Rs 100.42 crore to the Profit & Loss Account, which will lead to an equivalent increase in profits. The company also mentioned it is seeking requisite directions from the appropriate forum to implement the award.
This development is expected to strengthen the company’s financials for the coming quarters and may influence stock movement in the near term.
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