InvestorQ : Can you give me your view on the doubling of profits of Oil India and is it a good buy?
Dhwani Mehta made post

Can you give me your view on the doubling of profits of Oil India and is it a good buy?

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Dilmini Mercia answered.
4 weeks ago
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For the quarter ended September 2021, the net profits of Oil India more than doubled to Rs.504.46 crore. This was largely supported by a surge in oil and gas prices. WTI crude, the US based oil benchmark, crossed $71.31/bbl and has almost spiked 75% on a yoy basis. This has helped Oil India, the second largest producer and extractor of crude oil in India, a much better pricing realization in the market on a per barrel basis.

In the case of Oil India, the production of oil was static on a yoy basis at 0.76 MT but output of natural gas rose by 1.78%. Top line revenues was up 61.3% yoy at Rs.3,679 crore and this was largely boosted by the better realizations in oil and gas. In fact, oil realizations stood at a very healthy $69.28/bbl during the quarter. The board of Oil India has recommended interim dividend of Rs.3.50 per share.

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