OIL INDIA LTD. Announces Quarterly Results (2QFY19); Net Profit Up 33.4%

Wed, 14 Nov

OIL INDIA LTD. has announced its results for the quarter ended September 2018. Here is a detailed performance review of the same:

OIL INDIA LTD. Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-17*	3 Jun-18*	3 Sep-18*	QoQ Change	YoY Change
Net Sales	Rs m	24,737	33,905	37,436	10.4%	51.3%
Other income	Rs m	3,310	1,268	2,878	127.0%	-13.0%
Turnover	Rs m	28,047	35,172	40,314	14.6%	43.7%
Expenses	Rs m	14,616	19,821	22,690	14.5%	55.2%
Gross profit	Rs m	10,122	14,084	14,746	4.7%	45.7%
Depreciation	Rs m	3,238	3,372	3,656	8.4%	12.9%
Interest	Rs m	1,058	1,124	1,257	11.8%	18.8%
Profit before tax	Rs m	9,136	10,855	12,712	17.1%	39.1%
Tax	Rs m	2,676	3,823	4,092	7.0%	52.9%
Profit after tax	Rs m	6,460	7,032	8,620	22.6%	33.4%
Gross profit margin	%	40.9	41.5	39.4
Effective tax rate	%	29.3	35.2	32.2
Net profit margin	%	23.0	20.0	21.4

Year-on-Year Performance:

• The company's operating income during the quarter grew 51.3% on a year-on-year (YoY) basis. The expenses were up by 55.2% YoY during the same period.
• The company's operating profit increased by 45.7% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 39.4% in 2QFY19 as against 40.9% in 2QFY18.
• Depreciation charges increased by 12.9% and finance costs increased by 18.8% YoY, respectively.
• Other income declined by 13.0% YoY during the quarter.
• Net profit for the quarter increased by 33.4% YoY. Net profit margins during the quarter declined from 23.0% in 2QFY18 to 21.4% in 2QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 10.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 14.5% QoQ during the same period.
• The company's operating profit declined by 4.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 39.4% in 2QFY19 as against 41.5% in 1QFY18.
• Net profit for the quarter increased by 22.6% QoQ, while net profit margins increased from 20.0% in 1QFY18 to 21.4% in 2QFY19.

To see how OIL INDIA LTD. has performed over the last eight quarters, please visit here.

OIL INDIA LTD. Share Price Performance

Over the last one year, OIL INDIA LTD. share price has moved up from Rs 350.9 to Rs 203.6, registering a Loss of Rs 147.4 or around 42.0%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,854.6 (up 2.2%). Over the last one year it has moved down from 15,669.8 to 13,854.6, a gain of 1,815 points (down 11.6%).

Overall, the S&P BSE SENSEX is up 6.5% over the year.

Current Valuations

At the current price of Rs 203.6, the price to earnings (P/E) ratio of OIL INDIA LTD. stands at 5.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.6 times.