Oil India (OIL) Q3FY21 revenue was in-line with our estimates while it reported EBITDA loss owing to higher than expected other expenses while tax write-back propelled PAT. Company reported Net revenue of Rs 21.3 billion, down 28% YoY. This was due to lower oil and gas price realizations. Average oil realization was down 30% YoY to USD 44.1 while Gas realization was down 40% YoY to Rs 5.1/scm. Crude oil sales volume was flattish to 0.723mmt while Gas volume was down by 2% YoY to 0.586bcm. Other expenses rose by 162% YoY to Rs 12.2 billion on account of higher provisions which led to an EBITDA loss of Rs 938 million. As the company wrote back Rs 11 billion of current tax which led to a net profit of Rs 9 billion, higher than our forecast, said IDBI Capital in its report.

Commenting on the result review, the broking firm said, "We cut EBITDA estimate by 4% and raise PAT by 227% for FY21E to factor in Q3 and keep FY22E/FY23E numbers largely unchanged. We raise our SOTP based TP slightly upwards to Rs 93 from earlier Rs 90 and downgrade the stock to Sell from Hold."  

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