Oil India aims to boost profit with gas price hike

Oil India aims to boost its profit by Rs 1000 crore annually, taking advantage of the increase in gas prices, as natural gas segment contributes about 10-12% of Oil India's revenues. On June 27, 2013, the government has approved a gas price hike for the first time in three years, which will raise the domestic gas prices around $8.4 per mmBtu from April 1, 2014, compared with $4.2 per mmBtu currently. This price hike will incentivize the state-run producer to get more aggressive in exploration activity.

The company has reported a rise of 71.88% in its net profit at Rs 764.55 crore in Q4FY13 as compared to net profit of Rs 444.81 crore in the same quarter previous year. Total income from operation of the company has increased by 37.16% to Rs 2471.75 crore as compared to Rs 1802.12 crore in corresponding quarter last year.