Oil India Q4FY13 result: Lower volume set off by lower subsidy burden - IDBI Capital

- Oil India's Q4FY13 came above expectation on the back of lower than expected subsidy burden. Adjusting to subsidy payout, the company's results came below expectation due to lower oil and gas production volume.

- OIL's revenue increased 37% YoY to Rs24.7 bn due to 42% jump in net realization to US$55.4/bbl in Q4FY13, partially offset by 10% YoY drop in oil production volume to 0.872mmt (IDBIest 0.96mmt). Natural gas production volume grew a meager 1% YoY to 648bcm against our expectation of 670bcm.

- The company's subsidy burden stood at Rs18.5 bn for Q3FY13, down 36% YoY (IDBIest Rs25.3 bn). For FY13, OIL's subsidy share as a percent of total upstream declined to 13.1% against 13.4% in both FY12 and our expectation.

- Due to lower subsidy burden, OIL's EBITDA margin increased 815bps to 39.5% in Q4FY13. Further, 9% YoY higher other income augmented net profit 72% YoY to Rs7.7 bn against our expectation of Rs6.9 bn.

Source : Equity Bulls

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