Oil India's Q2 Financial Results Show Mixed Performance, Hold Call by MarketsMOJO

Oil India, a largecap company in the oil exploration and refineries industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, Oil India has seen a negative performance in the second quarter of the fiscal year 2024-2025, with a score of -16 compared to 0 in the previous three months. However, there are some positive aspects to the company's financials. The cash and cash equivalents have shown an improvement, with the highest amount of Rs 8,058.35 crore in the last six half-yearly periods, indicating a better short-term liquidity.

On the other hand, there are some areas that are not working in favor of Oil India. The profit before tax less other income (PBT) has fallen by 29.6% compared to the average PBT of the previous four quarters. The net sales have also decreased by 15.7% compared to the average of the previous four quarters, indicating a negative trend in the near term. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

The operating profit (PBDIT) has also shown a decline in each quarter of the last five quarters, while the net sales have been the lowest in the last five quarters. The interest cost has also increased by 15.63% compared to the previous quarter, indicating a rise in borrowings. The operating profit margin has also decreased, showing a decline in the company's efficiency.

In terms of profitability, the profit before tax less other income and profit after tax have both shown a negative trend in the near term. However, the non-operating income has increased, with the highest amount in the last five quarters. It is important to note that this increase may not be sustainable as it is from non-business activities.

Overall, Oil India's financial performance for the quarter ending September 2024 has been negative, with some areas showing improvement while others have declined. Investors are advised to hold their stock in the company, as recommended by MarketsMOJO.