Mumbai: Oil India Ltd is engaged in the exploration, development and production of crude oil and natural gas. It is also involved in transportation of crude oil and production of LPG. Along with this, this government company also provides various types of E&P related services to oil blocks. The stock started the new week with a bang. Its share jumped 7 per cent in tandem with heavy volumes. Its total traded volume was around 63 lakh shares in the first two hours on NSE. This is its highest level since July 2022. The question arises why this stock has gained momentum today. The reason for this is that in the December quarter, the company has earned the highest quarterly profit ever. The company earned a record profit in the December quarter on the back of better price and better price of crude oil and natural gas.
Oil India’s profit in the third quarter of the financial year 2023 was Rs 1,746.10 crore, which was Rs 1,244.90 crore in the first quarter a year ago. The turnover of the company also increased by 27.13 percent during this period. Also, the company’s crude oil production increased by 7.03 per cent to 0.807 MMT from 0.754 MMT a year ago. Natural gas production also increased by 1.64% to reach 806 MMSCM as against 793 MMSCM a year ago. The board of Oil India has declared a second interim dividend of Rs 10 per share. This article is powered by Dalal Street Investment Journal, India’s No. 1 Investment Magazine. Click here to get regular updates about Winning Stocks and Recommendations.
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