Oil India Q4 net profit drops 10% to Rs 2,333 crore; announces bonus issue

Oil India Limited (OIL) reported a 10% sequential decline in consolidated net profit for the fourth quarter of FY 2023-24, registering Rs 2,332.94 crore compared to Rs 2,607.66 crore in the previous quarter. However, on a year-on-year basis, the company's net profit rose by approximately 17% from Rs 1,979.74 crore in the same period last year, driven by a robust performance in its crude oil segment.

The company's revenue from operations for Q4 came in at Rs 10,166 crore, marking a 16% increase from the same period last year.

In a significant move, Oil India's board has recommended the issuance of bonus shares in the ratio of 1:2, meaning one equity share of Rs 10 each for every two existing equity shares of Rs 10 each, fully paid up. This recommendation is subject to shareholder approval.

Additionally, the board proposed a final dividend of Rs 3.75 per equity share (pre-bonus), which equates to Rs 2.50 per equity share post-bonus for FY24, pending shareholder approval. This final dividend is in addition to the interim dividend of Rs 3.50 and the second interim dividend of Rs 8.50 already paid for FY24.

In Q4, Oil India’s EBITDA rose to Rs 3,838 crore. The EBIT for the crude oil segment increased by 18% year-on-year to Rs 1,744.75 crore, while the EBIT for the natural gas segment decreased to Rs 687.34 crore from Rs 823.55 crore in the previous year.

Oil India highlighted its operational achievements, including the highest-ever oil and gas production of 6.54 MMTOE, leading to a record EBIDTA of Rs 11,643.30 crore for FY24. The company's crude oil production increased by 6% year-on-year in Q4, with an overall annual increase of 5.76% to 3.359 MMT compared to 3.176 MMT in FY23.

Natural gas production also saw growth, with a 3.21% increase in Q4 over the corresponding quarter of FY23, achieving a record annual production of 3.182 BCM. The company drilled a record 61 wells during FY24, surpassing all previous records since its inception.