OMC profits could reach Rs 1 trillion this financial year: CRISIL Ratings
India’s oil marketing companies (OMCs) are poised for a substantial operating profit rebound this financial year, with estimates suggesting it could reach Rs 1 trillion according to analysis by CRISIL Ratings. This comes as a promising development compared to the average of approximately Rs 60,000 crore recorded between financial years 2017 and 2022 and the previous financial year’s low of Rs 33,000 crore.
The expected surge in profitability is likely to bolster the sector’s credit metrics, which had faced challenges in recent years due to muted profitability and substantial capital expenditure (capex). CRISIL Ratings analysed three OMCs representing the entire sector, signaling an optimistic outlook.
