Oil India stock climbs 6% as Q2 net profit zooms 464% YoY

Over the past 12 months, Oil India stock has soared 153%, more than doubling investors' capital, while Nifty rose 23% during the same period

Shares of Oil India surged around 6% on November 6, following a robust earnings report. The state-owned firm reported a substantial net profit increase to Rs 2,069 crore, up from Rs 640 crore in the same quarter last year—an impressive 464% growth. However, revenue for the quarter fell 8% year-on-year to Rs 8,136 crore.

Analysts at Motilal Oswal and Kotak Institutional Equities had anticipated a net profit range of Rs 1,667.7 crore to Rs 2,123.2 crore, with revenue estimates between Rs 5,587.2 crore and Rs 5,977 crore.

Sequentially, Oil India’s consolidated net profit rose 25% from the previous quarter to Rs 1,834 crore for the period ending September 30, 2024, though its revenue from operations dipped 1.6% quarter-on-quarter to Rs 5,246.2 crore.

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The company's EBITDA also declined 11.5% sequentially to Rs 2,183.2 crore, while margins tightened from 46.3% to 41.6%.

Oil India also announced an interim dividend of 30%, equivalent to Rs 3 per share at a face value of Rs 10, with a record date of November 15.

Additionally, Oil India disclosed two new joint ventures to advance Compressed Biogas (CBG) projects—one with Hindustan Waste Treatment and another in collaboration with GPS Renewables and Bharat Petroleum Corporation Limited (BPCL).

In another recent development, Oil India is reportedly set to begin exploration in Nagaland under the Open Acreage Licensing Policy (OALP), with drilling underway at 30 of its blocks, except those in Nagaland.

As of 10:39 am, Oil India shares were trading up 5.8% at Rs 524.55 on the National Stock Exchange (NSE). The stock has rallied approximately 107% this year, significantly outpacing Nifty's 10% gain.

Over the past 12 months, the stock has soared 153%, more than doubling investors' capital, while Nifty rose 23% during the same period

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