Oil India (OIL) Q1 24/25 earnings summary

Executive summary

• Achieved significant growth in crude oil and natural gas production for Q1 FY25, with crude oil up 6.22% year-over-year and natural gas up 9.8% year-over-year.

• Consolidated revenue for Q1 FY25 was ₹9,350.89 crore, with consolidated net profit at ₹2,016.30 crore, up from ₹1,399.49 crore in Q1 FY24.

• Standalone revenue from operations for Q1 FY25 was ₹5,839.67 crore, up from ₹4,644.73 crore in Q1 FY24.

• Board approved and allotted bonus shares in July 2024, impacting EPS calculations for the quarter.

Financial highlights

• Average crude oil price realization for Q1 FY25 was $84.89/bbl, up 10.46% year-over-year.

• Standalone PAT for Q1 FY25 was INR 1,487 crore, down from INR 1,613 crore in Q1 FY24.

• Standalone EPS (adjusted for bonus shares) was ₹9.02 for Q1 FY25, while consolidated EPS was ₹11.59.

• EBITDA margin declined to 43.79% from 53.49% due to higher SAED and GST provisions.

• Consolidated profit before tax for Q1 FY25 was ₹2,701.47 crore, up from ₹1,843.35 crore year-over-year.

Outlook and guidance

• Production trajectory for both oil and gas remains on track to meet aggressive growth targets, with plans to reach 4+ MMT oil and 5 BCF gas in 2-3 years.

• Drilling plans include 78 wells in FY25 and 100 wells in FY26, with a 20% growth in workover activity.

• Indradhanush Gas Grid expected to be operational by December 2024, enabling higher gas offtake.

• Management continues to monitor ongoing legal and regulatory matters, including GST/service tax on royalty and environmental liabilities, with provisions made for potential exposures.