Oil India’s Q4 saw a 13.45% surge in standalone net profit to Rs 2,028.83 crore, alongside a 2.46% revenue uptick to Rs 5,527.3 crore compared to Q4 FY23. Profit before tax rose by 7.96% YoY to Rs 2,524.42 crore for the quarter ending March 31, 2024. Annually, the company experienced an 18.48% decline in net profit to Rs 5,551.85 crore, with revenue decreasing by 3.03% to Rs 20,724.58 crore in FY24 over FY23, attributed to provisions for statutory compliances.
Crude oil production in Q4 FY24 rose by 6% YoY, with a 5.76% increase to 3.359 MMT in FY24 from 3.176 MMT in FY23. Natural gas production in Q4 FY24 grew by 3.21% compared to the same quarter in FY23, reaching a record high of 3.182 BCM for the year.
As NRL is an OIL subsidiary, OIL’s group turnover for the year totaled Rs 36,303.62 crore, down from Rs 41,025.98 crore in FY23, primarily due to reduced prices of crude oil, natural gas, and petroleum products in FY24 compared to FY23, along with decreased NRL throughput during Q1 FY24 due to refinery turnaround, according to the company.
The board proposed a 1:2 bonus share issue, with July 2, 2024, as the record date. Additionally, a final dividend of Rs 3.75 per equity share (pre-bonus) was recommended for the fiscal year ending March 2024.
As of March 31, 2024, Oil India, a state-owned Maharatna, is under the administrative control of India’s Ministry of Petroleum and Natural Gas, with the Government of India holding a 56.66% stake. The scrip is trading at Rs 646.65 on the BSE, up 0.05%.
Oil India’s Q4 Revenue:
Revenue from operations rose 16% to Rs 10,166 crore from the previous year. The PSU’s EBITDA increased to Rs 3,838 crore. Crude oil EBIT reached Rs 1,744.75 crore, up 18% from last year. EBIT for natural gas segment stood at Rs 687.34 crore compared to Rs 823.55 crore in the prior year. Oil India reported its highest ever EBIDTA of Rs 11,643.30 crore for FY24. Crude oil production in Q4 increased by 6% year-on-year, with a 5.76% overall rise to 3.359 MMT in FY24, as per the company’s press release.
Oil India Recommends Dividend: The Board proposes a final dividend of Rs. 3.75 per equity share (pre-bonus), which equates to Rs. 2.50 per equity share (post-bonus) for FY 2023-24, pending shareholder approval. The dividend, in addition to Interim Dividends of Rs. 3.50/- (pre-bonus) and Rs. 8.50/- (pre-bonus), will be paid within 30 days of AGM.
Oil India Announces Bonus Share: The exchange filing on May 20 stated, “Additionally, the Board proposes issuing Bonus Shares at a ratio of 1:2, subject to shareholder approval through Postal Ballot [E-Voting]. The Record Date is set for Tuesday, July 2, 2024, to ascertain shareholder eligibility.”
PL Advises Accumulate: Swarnendu Bhushan, Co-Head Institutional Equities at Prabhudas Lilladher Pvt. Ltd., recommends an accumulate rating with a target price of Rs. 722 per share. Bhushan anticipates the company reaching a production milestone of 4 MMT of oil and 5 BCM of gas by FY26, potentially yielding an EPS of Rs. 73. However, accounting for a conservative scenario with a 5% CAGR in oil and 10% CAGR in gas production over FY24-26E, the projected EPS stands at Rs. 67.3. The recommendation to accumulate is based on enhanced visibility of production growth, with the standalone business valued at 9x FY26 adj EPS, supplemented by the value of investments to determine the target price.
To qualify for Oil India’s bonus shares and dividend, shareholders must hold shares before the ex-date and record date, determined by the company. The record date, set by Oil India as July 2 for bonus issue, marks the eligibility for bonus shares, while the dividend’s record date is pending announcement.
Oil India’s Share Performance & Return: The Maharatna PSU’s 52-week high on BSE is Rs 669.05 per share (as of 21/05/2024), and its low is Rs 240.65 (as of 26/06/2023). With a market capitalization of Rs 71,240.00 crore, Oil India’s shares have surged 73% year-to-date, 143% in the past year, 173% in the last two years, and yielded a 397% return over the past three years.
Oil India’s Bonus Share History: Prior to today’s issuance, Oil India had issued three bonuses since March 29, 2012. The most recent bonus, in a 1:2 ratio, had an ex-date set for March 27, 2018.
Oil India Limited (OIL) is a fully integrated Exploration & Production company in the upstream sector, tracing its roots to India’s oil discovery in 1889. A Maharatna Company, OIL is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas, and ranks as India’s second largest national oil and gas company, as stated on its official website.
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