Oil India Ltd back in black on lower taxes

State-owned Oil India Ltd (OIL) has reported a net profit of ₹925.64 crore for the March quarter as opposed to a loss last year as lower corporate tax offset a dip in oil and gas prices.

Net profit in January-March at ₹925.64 crore compares with a loss of ₹208.54 crore in the same period a year back, the company said in a statement.

The company said it opted for the new concessional tax regime, paying an effective tax rate of 25.17 per cent in lieu of giving up exemptions. Current corporate tax rate is 35 per cent.

“This has resulted in reversal of deferred tax liability of ₹821.01 crore during 2019-20,” the statement said.

The lower tax rate offset drop in revenue from slump in oil and gas rates.