The shares of India’s second-largest National E&P Company rose 3 percent to Rs 289.80 apiece after the company plans to invest Rs 25,000 crore in clean energy sources to achieve net zero carbon emission goals by 2040.
At 1:45 p.m., On the National Stock Exchange, Oil India Ltd shares were trading at Rs 282.60 per share, up 0.50 percent from the previous close price. The company has a market capitalization of Rs 30,694 crore.
According to the company’s exchange filing, Oil India has set an ambitious target of becoming a ‘Net-Zero’ emission company by 2040 through a variety of initiatives such as adopting cleaner energy sources, investing in renewable energy projects, and implementing advanced technologies to minimize greenhouse gas emissions, with an estimated investment of Rs. 25,000 Cr.
The company plans to invest about Rs 9,000 crore for 1,800 megawatts of solar and onshore wind energy projects and Rs 3,000 crore for the green hydrogen project. It will also invest Rs 1,000 crore in carbon capture, utilization, and storage projects. according to a Reuters report.
Shares of Oil India have climbed by 10 percent in the previous six months and by 44 percent in the last year.
The company’s revenue has declined by 33 percent year on year, from Rs 9,037 crore in Q1FY23 to Rs 6,028 crore in Q1FY24. During the same period, Net profit was significantly reduced by 58 percent from Rs 3,140 crore to Rs 1,303 crore.
The Company’s return on equity increased from 18.39 percent in FY22 to 22.68 percent in FY23, while the return on capital employed rose from 18.17 percent to 21.50 percent during the same period.
As per the recent financial year, the company’s margin has improved to a level where the operating margin is 39.89 percent and the net profit margin is 27.28 percent.
According to the recent shareholding pattern, the promoters hold 56.66 percent of the company, while Foreign institutional investors hold 11.03 percent and domestic institutional investors hold a 26.23 percent stake.
Oil India Ltd is involved in the exploration, development, and production of crude oil and natural gas, as well as crude oil transportation and LPG production. It also offers other E&P services for oil blocks.
Written by Omkar Chitnis
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