Oil India Q2 Profit Plummets 80% Due to Litigation Provision

9 Nov 2023 , 01:16 PM

Oil India reports an over 80% drop in Q2 profit, citing a provision of 23.63 billion rupees for ongoing litigation. Profit for the quarter ending Sept. 30 declines to 3.25 billion rupees from 17.21 billion rupees in the previous year.

Profit before tax in the crude oil segment rises by almost 42%, while the natural gas segment sees a growth of over 24%, according to the company’s statement. The drop in profit is attributed to charges related to an ongoing litigation over a service tax demand in Assam, Arunachal Pradesh, and Rajasthan.

The company is actively contesting disputed matters before various forums. Q2 revenue increases by 2.4% to 59.13 billion rupees.

Oil India’s peer, Oil and Natural Gas Corporation Ltd, is expected to report results on Friday. Oil India shares settle 0.3% lower before earnings, having risen 49.2% this year, outperforming the 6.8% rise in the Nifty Energy Index. The company’s board declares an interim dividend of 3.50 rupees per share.

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