Oil India's net profit declines by 33% on weak segment performance

Asia's oldest and biggest pioneer oil exploration and production company - Oil India reported weak June quarter ended 2016 (Q1FY17) performance led by decline in crude oil, natural gas and liquified petroleum gas (LPG) segment.

The state-owned reported net profit of Rs 494.41 crore, registering decline of 33.47% from Rs 743.21 crore in the corresponding period of the previous year.

While its total income from operation was at Rs 2221.19 crore, decreasing by 22.94% versus Rs 2882.64 crore a year ago same period.

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It's operating profit (EBITDA- earnings before interest tax depreciation and amortization) of Rs 862.89 crore also followed the negative sentiments, declining by 29.34% year-on-year (yoy). The company's operating profit margin (OPM) stood at 38.84%, contracting by 352 basis points yoy.

On segment wise revenue break-up, the crude oil segment declined by 26.87% yoy to Rs 1605.35 crore, while natural gas segment stood at Rs 451.11 crore, down by 16.69% yoy and LPG segment at Rs 22.21 crore, down by 31.70%.

Oil India only saw growth in pipeline transportation segment which was at Rs 97.57 crore in Q1FY17, witnessing rise of 19.35% yoy.

This Q1FY17 performance was in compliance with Indian Accounting Standards (Ind-AS).

Shares of Oil India closed at Rs 389.25, up by 0.93%.