The aggregate consolidated net profit of Indian oil and gas companies more than doubled in the June quarter of fiscal 2024.
The 21 companies considered for the analysis posted cumulative profit growth of 134% year-on-year to 57,479.4 crore in the April-June period.
Public sector refiners led the profit growth for the sector, with Indian Oil Corp. leading the pack as it recorded a net profit of Rs 13,750.44 crore, compared to a net loss of Rs 1,992.5 crore in the year-ago period.
Bharat Petroleum Corp. came in second with a consolidated net profit of Rs 10,550.9 crore, compared to a net loss of Rs 6,263.1 crore during the same period last year. Hindustan Petroleum Corp. posted a net profit of Rs 6,203.9 crore, compared to a net loss of Rs 10,196.9 crore in the June quarter of fiscal 2023, while Hindustan Oil Exploration Co.'s profit doubled to Rs 66.1 crore from Rs 32.4 crore a year ago.
However, Chennai Petroleum Corp. posted the biggest net profit fall of 76% year-on-year to Rs 556.5 crore in the June quarter. This was followed by Supreme Petrochem Ltd. and Mangalore Refinery and Petrochemicals Ltd. which reported a 63% fall in net profit each.
In terms of revenue, the sector saw an aggregate 13% fall in revenue growth, mainly on account of lower crude prices.
Hindustan Oil Exploration, Deep Industries Ltd., and Castrol India Ltd. recorded the highest year-on-year revenue growth at 100%, 39%, and 7.4%, respectively.
Sector giants in terms of market capitalisation like Reliance Industries Ltd., Oil and Natural Gas Corp., and Indian Oil saw a fall in revenue growth. Revenues of Reliance Industries Ltd. and Oil and Natural Gas Corp. fell by 20% each, while Indian Oil's top line was down by 12%.
Oil India Ltd. witnessed the highest revenue fall as sales slipped by 42%. This was followed by Chennai Petroleum and Mangalore Refinery, which recorded a 35% and 34% decline in revenue, respectively.
Despite a double-digit drop in overall revenue, cumulative earnings before interest, taxes, depreciation, and amortisation grew 108% this quarter, with margin improving by 8 basis points as a whole.
Jefferies Financial Group Inc. attributed the positive margin gain to the super-normal marketing margin witnessed in the sector. In order to recoup losses made in the last fiscal, oil marketing companies kept retail prices fixed despite steep corrections in product prices, the brokerage said in a July 20 note. This resulted in OMCs making super-normal margins of Rs 7 and Rs 11 per litre on diesel and petrol, respectively.
Indian Oil's Ebitda surged 15 times to Rs 22,163.9 crore from Rs 1,355.5 crore a year ago. Bharat Petroleum reported an Ebitda profit of Rs 15,809.8 crore, compared to an Ebitda loss of Rs 10,864.7 crore in the year-ago period. Hindustan Petroleum too reported an Ebitda profit of Rs 9,654.8 crore against an Ebitda loss of Rs 12,494.6 crore the previous year.
Chennai Petroleum, Supreme Petrochem, and Oil India recorded a 72%, 65%, and 53% fall in Ebitda, respectively.
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