Oil India Q2 net drops 33 percent on lower revenue

State-run explorer Oil India (OIL) Wednesday reported a 32.7 percent decline in net profit at Rs.608.3 crore in the second quarter ended September, caused by lower revenues and operational income.

The company had posted a net profit of Rs.903.64 crore in the like quarter of the last fiscal.

Net sales dropped 23.8 percent to Rs.2,081 crore in the quarter under review, as compared to Rs.2,729.6 crore in the same quarter last year owing to lower crude oil prices.

International oil prices have been falling for months and Brent crude price averaged at around $102 a barrel for the quarter, sliding to a four-year low Tuesday.

Oil India's crude revenues fell 30.8 percent year-on-year to Rs.1,558.9 crore with earnings before interest and tax (EBIT) falling 47 percent to Rs.453.60 crore in the second quarter.

Operating profit, or EBITDA (earnings before interest, tax, depreciation and amortisation), dropped 34.8 percent compared to the corresponding quarter of last year to Rs.698 crore.

Finance costs in the quarter recorded a major jump to Rs.78.07 crore from Rs.0.31 crore crore

Oil India said in a stock exchange filing that it has received notice of demand of Rs.1,324.8 crore from the Assam Value Added Tax Authority claiming tax on sharing of under-recoveries, or losses, to downstream oil companies and on transportation charges on crude oil.

Oil India stock closed Wednesday at Rs.596.10 a share -- 14.50 points, or 2.37 percent, lower than its previous close on the Bombay Stock Exchange.