Currency weakness didn’t impact our financials much in Q1: TK Ananthkumar, Oil India Ltd

In a chat with ET Now, TK Ananthkumar, Director Finance, Oil India Ltd, shares his views on the quarterly performance. Excerpts:


ET Now: How have been your realisations for the quarter gone by and were you witnessing or did you experience some pressures when it came to your net realisation?

TK Ananthkumar: The net realisation this quarter has been $44 compared to $53 in the corresponding quarter. The reduction of $9 is basically on account of the lower gross realisation in crude oil price. The crude oil price has come down from $109 to $101, which impacted the net realisation.

ET Now: Your oil production growth has been muted right now. What is the outlook for the future quarters?

TK Ananthkumar: The oil production also has not grown this time. We have shown a dip of close to 5% in oil production. However, in the gas production there is a growth of 5%. So overall the loss of production in oil has been reequipped to some extent in the gas production. But we are gearing up to deploy some extra technology from now onwards so that what we lost in the oil production can be made up.

ET Now: You have a one-time adjustment, the write off of dry well this quarter. Can you share some more details on that?

TK Ananthkumar: There are no significant one-time adjustments. However, Rs 100 crore well write off has been accounted in the current quarter.

ET Now: And how was the weakness in the currency impacting your financials this quarter?

TK Ananthkumar: There has not been a significant depreciation in the rupee in the first quarter compared to the corresponding quarter (April-June) in 2012. So it has not impacted much.

ET Now: A word on your subsidy burden for the quarter gone by?

TK Ananthkumar: We have given Rs 1982 crore at the rate of $56 per barrel.