Turnover increased by 27% in the fourth quarter to ₹4,972.91 crore, and by 55% in the fiscal year to ₹16,427.65 crore. Oil India's revenue from operations in March 2022 was ₹4,478.61 crore, up 73.62 percent from ₹2,579.50 crore in March 2021, while the company's EPS climbed to Rs. 15.03 from Rs. 7.82 in March 2021. According to the brokerage firm Sharekhan, the company’s operational performance was mixed with in line with crude oil realisation of $98.1/ bbl (up 24.8% q-o-q) while oil sales volumes of 0.73 mmt (up 0.8% q-o-q). However, gas sales volume disappointed sharply with a 11.9% q-o-q decline to 0.56 bcm. Oil division’s EBIT grew strongly by 74.2% q-o-q to Rs. 2,089 crore reflecting the benefit of higher oil prices and gas EBIT turned positive to Rs. 77 crore (versus EBIT loss of Rs. 108 crore in Q3FY22), as per the brokerage.
The brokerage has said in a report that “The recent sharp surge in crude oil prices and expectation of further steep hike in domestic gas prices from October 2022 would drive an 11% CAGR in OIL’s standalone PAT over FY2022-FY2024E and improve RoE to 14.3%. Moreover, the recent stake increase in Numaligarh Refinery Ltd (NRL) could create long term value for OIL. Hence, we maintain a Buy rating with an unchanged SoTP-based PT of Rs. 290."
The stock is trading at 3.5x its FY2023E EPS (including earnings contribution from NRL). Likely windfall tax on upstream PSUs or LPG subsidy burden is key risk our earnings and valuation, says Sharekhan. The company's Board of Directors has also recommended a final dividend of Rs. 5/- per share, or 50%, for the fiscal year 2021-22, subject to shareholder approval at the next Annual General Meeting (AGM). The company's dividend yield for the financial year 2021-22 is 6.40 percent. The stock closed today at ₹246 in the market, up 3.17 percent from yesterday's close of ₹238.45.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
