Oil India Hits Record Profit in Q4 with Bonus Share Announcement

State-owned Oil India Ltd (OIL) has announced its highest-ever quarterly net profit for the three months ending March 31, driven by an increase in oil production and improved pricing. The company's standalone net profit surged to Rs 2,028.33 crore in January-March, marking a 13.45 per cent rise from the same period last year. This achievement is highlighted as the company's most substantial quarterly profit after tax to date.

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On a consolidated basis, which includes the performance of Numaligarh Refineries Ltd, OIL's net profit for the fourth quarter of the fiscal year 2023-24 increased by 18 per cent to Rs 2,332.94 crore. This information was disclosed in a stock exchange filing by India's second-largest state-owned oil and gas producer. The company benefited from a 6 per cent year-on-year increase in oil production and a 16 per cent boost in turnover to Rs 10,375.09 crore due to higher oil prices.

Despite the positive quarterly results, OIL reported a 29 per cent decrease in its consolidated net profit for the full fiscal year 2023-24, amounting to Rs 6,980.45 crore. On a standalone basis, the net profit for FY2023-24 was Rs 5,551.85 crore, lower than the previous year's Rs 6,810.40 crore. The decline in annual profit was attributed to provisions made for statutory compliances.

Throughout FY23-24, OIL achieved a 5.7 per cent increase in crude oil production, reaching 3.17 million tonnes, and a 3.21 per cent rise in natural gas output to a record-breaking 3.182 billion cubic metres. Additionally, the company drilled 61 wells during the fiscal year, setting a new record since its inception.

In terms of shareholder returns, OIL's board approved a 1:2 bonus issue—granting one free share for every two held—and announced a final dividend of Rs 3.75 per equity share of Rs 10 each pre-bonus. This translates into a final dividend of Rs 2.50 per share post-bonus for the fiscal year 2023-24. This final dividend comes on top of an interim dividend of Rs 3.50 pre-bonus and a second interim dividend of Rs 8.50 pre-bonus paid during the fiscal year.

The financial performance of OIL reflects its strategic focus on enhancing production capabilities and capitalizing on favorable market conditions. Despite facing challenges that impacted its annual profitability, the company's record-breaking quarterly results and operational achievements underscore its resilience and commitment to growth.