Mumbai: Oil India Ltd, a public sector exploration and production company focused mainly in Assam, posted a 32% drop in net profit for the second quarter of the current fiscal, missing analyst estimates by a huge margin.

Net profit dropped from Rs903.64 crore in the second quarter last fiscal to Rs608.33 crore in the September quarter this fiscal mainly because of a higher subsidy burden of Rs2,240 crore which the company had to bear.

Its revenue also dropped by 22.6% to Rs2,192.48 crore in the September quarter from Rs2,832.50 crore in the year-ago period.

A Bloomberg poll of 27 analysts had estimated net profit at Rs815 crore while a poll of 28 analysts had estimated revenue at Rs2,590.8 crore.

In a report released after the results, Dhaval Joshi, an analyst with brokerage Emkay Global Financial Services, said, “Results were below our and consensus estimates on back of higher subsidy burden of Rs2,240 crore, which grew 21.3% q-o-q." Sales were low due to lower crude oil prices, he added.

During the quarter, the realization per barrel on sale of crude oil for the company stood at $101.25 as against $108.33 in the second quarter last year.

Close