SPONSORED BY

Auto Segment
Mutual Fund Segment
My Budget
Expert Speak
In Association With
 
Business Standard

Long-term subsidy sharing mechanism will do OIL good: T K Ananth Kumar

Interview with Director (finance), Oil India Ltd

Related News

Oil exploration and production company Oil India Ltd (OIL) is one of the divestment candidates where the government is planning to sell 10 per cent stake. It currently owns 78.43 per cent stake in the company. At the current price of Rs 504 per share, the may help the government raise around Rs 3,030 crore. T K ANANTH KUMAR, director (finance) at OIL, speaks to Ajay Modi about the company’s prospects and challenges, going forward. Excerpts:

The in 2009 was Rs 1,050 per share. After the earlier this year, the share price has come down. Will this ensure greater interest and participation?
OIL has become more visible after the bonus issue. has improved and volumes have picked up. We expect a good participation in OIL disinvestment if it is taken up this year.

OIL has performed well in FY12. What is the outlook for the current fiscal considering crude oil price is firm?
We have posted 19.40 per cent growth in net profit in FY12. We are expecting a growth of four per cent in crude oil production and 10 per cent in gas. Volume growth, firm crude oil price and weak rupee together, will help us perform well this year, too.

Will the lack of clarity on subsidy sharing affect the disinvestment or are the company’s fundamentals strong enough to negate the impact?
We have been regularly taking up the issue of lack of clarity in subsidy sharing with the government. This has been a continuous exercise. We hope some long-term mechanism is put in place. If this is done, it will improve the company’s working. However, as a company, our growth has been driven by strong fundamentals.

Tell us about some positive triggers for the company, going forward?
We are looking at an international acquisition. We are trying to invest in a producing asset so that it can generate quick revenues. This year we hope to do a deal and we are ready to invest Rs 6,000-7,000 crore.

OIL was recently in the news as it was keen to pick up stake in RGTIL. What is the status? Why has the company dropped the plan?
Upon evaluation, we found it to be an expensive proposition and therefore, it was not fitting in our priority list. We are evaluating other opportunities in the areas of exploration and production.

What kind of preparations are on for disinvestment?
We have not been consulted so far. There has been no direction so far from the Department of Disinvestment. In case of disinvestment, government sells its stake and the company has little role to play.

Read more on:   
|
|
|
|
|
|

Read More

There is a lot of value in the market: Sandesh Kirkire

Despite the pessimism built around the lack of reforms and the waning investor interest in equities, Sandesh Kirkire, chief executive officer, Kotak ...

Recommended for you

Quick Links

Market News

DLF seeks to reassure investors

Responding to the penalty imposed by the Securities and Exchange Board of India (Sebi), DLF on Thursday said, "We have been made aware of ...

FTIL in talks to sell stake in ATOM, DGCX

Chairman asks shareholders to oppose govt pressure for merger of NSEL with parent

Jute mills in tight spot over relaxation in packaging norms

The problems in the sector started in 2012-13, when the then UPA govt tweaked the Jute Packaging Materials Act

The commodities market needs a strong regulator: P K Singhal

Interview with Joint Managing Director, Multi Commodity Exchange

Poultry farmers hit by low wholesale prices

Prices are 20-30% lower than a year ago; reports of bird flu during the onset of winter hit demand

 

Back to Top