Shares of Oil India were dropping on Thursday after the firm reported a steep plunge in second-quarter profit.
What Happened: The State-owned has reported a 70% decline in net profit from the previous year, falling to ₹325.3 crore for the second quarter ended September from ₹2,116 crore earned last year. Second-quarter revenue from operations stood at ₹8,816 crore, a 13% fall from ₹10,121 crore last year.
Oil India’s bottom line was hit by charges related to ongoing litigation over a service tax demand in Assam, Arunachal Pradesh and Rajasthan.
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The company said its EBITDA in the second quarter was ₹3,197.74 crore, compared with ₹2,743.03 crore last year. The EBITDA margin for the second quarter was 46.6%.
The rise in EBITDA was supported by the company’s ongoing improvement in crude oil production, which increased by 5.70% in the quarter to reach 0.835 million metric tonnes.
Additionally, the company declared an interim dividend of ₹3.50 per share for the financial year 2023-24. The interim dividend will be paid on or before December 8. The record date for determining the eligibility of shareholders for payment of the dividend has been set for Wednesday, November 22.
Price Action: Oil India’s share price was down 2.09% to ₹304.10 around the start of trade on Thursday.
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