Moneycontrol
Oct 19, 2016 01:20 PM IST IST | Source: Moneycontrol.com

Oil India Q2 PAT seen up 16.2% to Rs 574.5 cr: Religare

Net Sales are expected to increase by 7.5 percent Q-o-Q (down 4.4 percent Y-o-Y) to Rs 2292.4 crore, according to Religare.


Religare has come out with its second quarter (July-September) earnings estimates for the India Energy sector. The brokerage house expects Oil India to report net profit at Rs 574.5 crore, up 16.2 percent quarter-on-quarter.


Net Sales are expected to increase by 7.5 percent Q-o-Q (down 4.4 percent Y-o-Y) to Rs 2292.4 crore, according to Religare.


Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 11.4 percent Q-o-Q (up 12.1 percent Y-o-Y) to Rs 863.1 crore.


Religare's report on Oil India


The recent increase in oil prices could negate the impact of a cut in domestic gas prices. At US$ 50/bbl oil prices, OINL’s earnings could improve to Rs 6.8bn from Q3FY17 onwards.


We don’t see any earnings upgrade for the stock at current oil prices. Oil prices need to average above US$ 60/bbl for any significant upside in earnings and valuations.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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