Oil India Ltd (Q1 FY13)

India Infoline News Service | Mumbai |

OIL India (OINL) reported its net sales for the quarter at Rs24,396mn up 8.2% yoy.

CMP Rs480, Target Rs563, Upside 17.2%

  • OIL India (OINL) reported its net sales for the quarter at Rs24,396mn up 8.2% yoy. The sales were below our estimates mainly due to lower crude realizations (on back of higher than estimated subsidy burden) and lower than estimated crude sales volumes.

  • Crude realizations at $53.9/bbl declined by ~10% yoy in dollar terms, but 21% depreciation in Rupee against the US dollar on a yoy basis, drove topline growth for OINL (realizations 9% up yoy in rupee terms). The subsidy burden borne by OINL in the quarter was Rs20.2bn (back to 13% levels, following a spurt in its subsidy share to 16% in Q4FY12 but similar to FY12 average levels).

  • Crude oil sales volumes declined by 3.3% yoy and 3.6% on qoq basis. Gas sales volumes also declined by 4.5% yoy and 2.6% on qoq basis. Total oil + OEG volumes declined by 3.7% on yoy basis and 3.2% on qoq basis. Volumes were lower on the back of shutdown at the Numaligarh refinery.

  • The OPM at 49.3% was 91bps lower yoy but in line with our estimates.  The statutory levies were higher by 669bps owing to the higher cess burden (Rs4,500/tonne cess from Q1FY13 onwards). The OPM decline was partly offset by lower other overheads incurred during the quarter. Depreciation charges were higher by 21.6% on back of higher dry well expenditure (60% up yoy).

  • Lower interest expenses and higher other income further helped the PAT to grow a healthy 9.5% yoy and 109% on qoq basis.

  • The sharp qoq improvement in performance is primarily due to extraordinarily high subsidy burden observed in Q4FY12 for OINL.

  • We maintain our BUY rating on the stock considering a steep discount to global peers on EV/BoE basis.

Result highlights
(Rs mn) Q1 FY13 Q1 FY12 % yoy Q4 FY12 % qoq
Net sales   24,396   22,544   8.2   18,021   35.4
Material costs   (29)   (65)   (55.2)   (119)   (75.5)
Personnel costs   (3,376)   (3,004)   12.4   (3,577)   (5.6)
Statutory levies   (7,707)   (5,614)   37.3   (5,189)   48.5
Other overheads   (1,259)   (2,544)   (50.5)   (3,490)   (63.9)
Operating profit   12,025   11,317   6.3   5,647   112.9
OPM (%) 49.3 50.2  (91) bps 31.3  1795 bps
Depreciation   (2,025)   (1,666)    21.6   (2,841)   (28.7)
Interest   (3)   (83)   (96.2)   (1)   181.8
Other income   3,772   2,997   25.8   3,389   11.3
PBT   13,769    12,566   9.6   6,194   122.3
Tax   (4,469)   (4,070)   9.8   (1,746)   156.1
Effective tax rate (%)   32.5   32.4     28.2  
PAT   9,299   8,496    9.5   4,448   109.1
PAT margin (%) 38.1 37.7  43 bps 24.7  1344 bps
Ann. EPS (Rs) 61.9 56.5   9.4 29.6   109.1
Source: Company, India Infoline Research

BSE 355.75 1.55 (0.44%)
NSE 355.35 1.60 (0.45%)

***Note: This is a NSE Chart

 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.