Oil India - Q2FY13 Results marginally ahead of estimates - LKP Research

OIL's Q2FY13 net profit of Rs9.5bn was marginally ahead of our estimate of Rs9.1bn. Net revenues for the quarter stood at Rs24bn (yoy -26.6% qoq +2.9%). OIL's subsidy burden for the quarter was Rs20.8bn resulting in fall in its net realization to $52.5/bbl (yoy -39.1% qoq -2.5%). Crude oil sales volume declined on annual basis by 2.4% while gas production increased by 0.9%. On a sequential basis, however, gas sales increased by 13% on account of resumption of operations at Numaligarh refinery which witnessed a shutdown during the previous quarter. Operating profit for the quarter of Rs11.5bn was ahead of our estimate of Rs10.7bn while operating profit margin was 47.8%.

We maintain our BUY rating on the stock with a price target of Rs578. At the CMP, the stock is trading at 7.5x and 3.3x FY13e EPS and EBITDA respectively.

Source : Equity Bulls

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