OIL pre-tax profit jumps two-fold in Q4 over reversal of deferred tax

State-run Oil India (OIL) has posted an almost twofold increase in its pre-tax profit in the fourth quarter of FY20 at Rs 267.57 crore, aided by reversal of deferred tax. It had reported a pre-tax profit of Rs 89.22 crore in the corresponding period of 2018-19.

Revenue saw a drop of 16 per cent in Q4FY20 at Rs 2,607.38 crore compared to Rs 3,097.26 crore during the January to March period of 2018-19.

For the entire FY20, profit before tax (PBT) fell 25 per cent to Rs 3,500.65 crore, against Rs 4677.19 crore in FY19. Revenue from operations for the year stood at Rs 12,166.54 crore versus Rs 13,780.45 crore, an increase of 12 per cent. A fall in international crude oil prices because of Covid-19 and a collapse in understanding between Opec and Russia on continued production cuts hurt the crude oil price realisation for the firm.