Guwahati: Pending tax matters in Assam, Arunachal Pradesh and Rajasthan has made Oil India to report a nearly 80% fall in profit in the second quarter of 2023-24.
The profit after tax dropped from Rs1651.43 crore in the first quarter of the fiscal to Rs325.31 crore in Q2 ending September 30, 2023, the Duliajan-based public sector company has reported in regulatory filings.
That is a 79.84% drop in PAT in this fiscal. The reduction in PAT is bigger at 81% compared to the second quarter of 2022-23 where PAT was Rs1720.53 crore.
The company has made a provision of Rs 2,655.57 crore towards a GST dispute in the said states. It has made a provision of the sum under the head “Exceptional Item (Provision for ST/GST on Royalty” in its Q2 results.
However, there are silver linings.
Crude oil production for the half year ending September 30, 2023 has increased by nearly 5.5% to 1.655 MMT compared to 1.569 MMT for the same period in last fiscal. Crude oil production touched 0.835 MMT and natural gas production reached 0.81 BCM in Q2 2023-24, as per company figures.
The company also recorded an increase of 8.72% in its natural gas production during Q2 this year compared to same period last fiscal.
The next plan of the company will be to contest the tax issues as the matter is in the court, according to source.
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