Oil India Ltd KEY HIGHLIGHTS. Shareholding (As on September 30, 2010) KEY RISKS. Stock Performances vis-à-vis market. Indexed price chart

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1 GICS Industry : Oil, Gas & Consumable Fuels l Sub Industry : Oil & Gas Exploration & Production l Website : Oil India Ltd Key Stock Indicators NSE Ticker : OIL Bloomberg Ticker : OINL:IN Face value / Share: 1. Div. Yield (%): 2.5 CMP (as on 2 Dec 21 Rs/share): week range up to 2 Dec 21 (Rs)(H/L): / Market Cap as on 2 Dec 21 (Rs mn): 328,76 Enterprise Value as on 2 Dec 21 (Rs mn): 243,21 Shares outstanding (mn): 24.5 Free Float (%): 21.6 Average daily volumes (12 months) : 114,325 Beta (2 year) : - OIL is primarily engaged in the exploration, development, production and transportation of crude oil and natural gas in India. Currently, most of its exploration, development and production activities pertain to onshore areas in the country. The company also processes natural gas to extract LPG. KEY HIGHLIGHTS Large presence in the north eastern region OIL is the second largest crude oil producer in India. It produces crude oil from its oil fields in Assam and Arunachal Pradesh, and natural gas from its gas fields in Rajasthan. Off its total crude oil and natural gas production of 3.61 million tones (mt) and million cubic meters (mcm) respectively in FY1, over 9% was from the north-eastern region. Encountered high success in exploration OIL has over 1, sq km of PEL/ML areas for its exploration and production activities, most of it in the North East of India, which accounts for its entire crude oil production and majority of gas production. Rajasthan is the other producing area of OIL, contributing 1% of its total gas production. Additionally, OIL s exploration activities are spread over onshore areas of Ganga Valley and Mahanadi. OIL also has participating interest in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater etc. as well as various overseas projects in Libya, Gabon, Iran, Nigeria and Sudan. OIL s systematic and scientific approach to exploration has been rewarded with a high success ratio of 65% of exploratory wells drilled. KEY RISKS Key Financial Indicators Mar-8 Mar-9 Mar-1 Revenue (Rs mn) 59, , ,152.9 EBITDA margins (%) PAT (Rs mn) 17, , ,14.3 PAT margins(%) Gearing (x) EPS (Rs/share) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x) - - n.m. : Not meaningful 5.9 Shareholding (As on September 3, 21) FII 2% DII 4% Others 16% Government policy on import duty structure and pricing of domestic sales of crude oil, petroleum products and natural gas. Government policy on subsidy sharing by upstream companies. Stock Performances vis-à-vis market Returns (%) YTD 1-m 3-m 12-m OIL NIFTY Note: 1) YTD returns are since April 1, 21 to Dec 2, 21. 2) 1-m, 3-m and 12-m returns are up to Dec 2, 21. Promoter 78% Indexed price chart (index) (') Dec 21-Jan 21-Feb 21-Mar 21-Apr 21-May 21-Jun 21-Jul 21-Aug 21-Sep 21-Oct 21-Nov Volumes (RHS) OIL NIFTY CRISIL COMPANY REPORT 1

2 BACKGROUND OIL traces it roots back to Oil India Pvt. Ltd., formed in 1959 with the Burmah Oil Company Ltd. holding two-thirds of equity and GOI holding one-third, to expand and develop the newly discovered oil fields of Naharkatiya and Moran in North East India. In 1961, Oil India Pvt. Ltd evolved into Oil India Ltd., which was an equal partnership between Burmah Oil and GOI. In 1981, OIL became a wholly owned GOI enterprise. At present, The Government of India, the Promoter of the Company is holding 78.43% of the total Issued and Paid-up Capital of the Company. The balance 21.57% of the Equity capital is held by others. COMPETITIVE POSITION Peer Comparison OIL ONGC HOEC CAIRN India Mar-1 Mar-1 Mar-1 Mar-1 Revenue (Rs mn) 78, ,146,352. 1, ,7.4 EBITDA margins (%) PAT (Rs mn) 26, , ,511.1 PAT margins(%) Gearing (x) EPS (Rs/share) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x) n.m: Not meaningful FINANCIAL PROFILE Lower subsidy improves profitability Increase in sales volume of crude oil and natural gas more than made up for the decline in sale price of crude oil on account of lower international prices in FY1 as compared to FY9. This increase in volume coupled with lower subsidy outflow in FY1 as compared to the previous year augmented top-line of the company by around 9% Y-o-Y in FY1 and also aided an improvement in profitability. Key Financial Indicators Units Mar-8 Mar-9 Mar-1 Revenue Rs million 59, , ,152.9 EBITDA margins PAT Rs million 17, , ,14.3 PAT margins Revenue growth EBITDA growth PAT growth Gearing Times... RoCE RoE CRISIL COMPANY REPORT 2

3 INDUSTRY PROFILE Crude Oil Domestic crude oil production rose from 6.8 million tonnes in to 33. million tonnes in , thanks to the new oilfield discoveries from exploration activities in However, since 1987 no new oilfields (except for Cairn India s Rajasthan fields) have been discovered, because of which, domestic production has stagnated at MT till date, which has also led to significant increase in India s dependence on crude oil import. The domestic crude oil demand-supply gap stood at an estimated 147 million tonnes (81 per cent of demand) in Domestic crude oil production sufficed for just 19 per cent of demand at 33.7 million tonnes. The government, through the introduction of New Exploration Licensing Policy (NELP) in , has made some efforts to increase crude oil production in the country by encouraging exploration activity and private sector participation. Subsequently, eight rounds under NELP have been conducted. PSU oil exploration and production companies have to share subsidy burden on petroleum products which caps their profitability in case of rise in crude oil prices. Dated Brent crude oil prices declined from $97.6 per barrel in 28 to $61.9 per barrel in 29 due to slow down in global economies. However, they were significantly above their recent lows of $34 per barrel recorded on 24th December 28. The recovery in global economic growth coupled with increasing dependence on crude oil from the Organization of the Petroleum Exporting Countries (OPEC) has led to rise in crude oil price in from 21 which averaged at $79 per barrel during January-November 21. Oil and gas exploration Domestic crude oil production rose from 6.8 MMT in to 33. million metric tonnes (MMT) in However, since 1987 no new oilfields (except for Cairn India s Rajasthan fields) have been discovered, because of which, domestic production has stagnated at MT till date. NELP was formulated in to encourage exploration activity and private sector participation in order to raise crude oil production in the country. The fiscal terms offered under the NELP rounds are attractive to augment investments - investors have been offered tax holiday for 7 years from the beginning of commercial production of crude oil. Subsequently, eight rounds under NELP have been conducted. A total of 126 discoveries have been made till date, of which 32 pertain to the pre-nelp period and 3 from the small and medium sized fields offered in and the remaining 7 pertain to the NELP blocks. The success of NELP is evident from the increase in the average accretion to in-place reserves, from million metric tonnes (MMT) till to MMT till However, exploration stage is more risky as compared to production stage since there is high probability of misses and the gestation period is also very long. CRISIL COMPANY REPORT 3

4 ANNUAL RESULTS Income Statement Balance sheet (Rs million ) Mar-8 Mar-9 Mar-1 (Rs million ) Mar-8 Mar-9 Mar-1 Net Sales 58, , ,74.1 Equity share capital 2,14. 2,14. 2,44.5 Operating Income 59, , ,152.9 Reserves and surplus 77, , ,67.5 Tangible net worth 79, , ,472. EBITDA 27, , ,157.8 Deferred tax liablity: asset 8, , ,29. EBITDA Margin Long-term debt Short-term-debt 1, Depreciation 3,515. 4, ,667.8 Total debt 1, Interest Current liabilities 11,16. 14, ,45.7 Other Income 4,734. 6, ,953.2 Total provisions 6, , ,647.6 Total liabilities 17, , ,749.3 PBT 26, , ,913.2 Gross block 66, , ,621. PAT 17, , ,14.3 Net fixed assets 41,4.8 45, ,772.4 Investments 5,78.5 7, ,94.5 PAT Margin Current assets 61,22. 8, ,36.3 Receivables 5, , ,284.4 No. of shares (Mn No.) Inventories 4,55.3 5,4.7 4,528.5 Cash 42,88.2 6,7.1 85,429.7 Earnings per share (EPS) Total assets 17, , ,749.2 Cash flow Ratio (Rs million ) Mar-8 Mar-9 Mar-1 Mar-8 Mar-9 Mar-1 Pre-tax profit 28, , ,454.6 Revenue growth (%) Total tax paid -8, , ,598.2 EBITDA growth(%) Depreciation 3,515. 4, ,667.8 PAT growth(%) Change in working capital 2, , ,441.5 EBITDA margins(%) Cash flow from operating activities 26, , ,82.7 Tax rate (%) Capital Expenditure -8, ,11. -9,658.2 PAT margins (%) Investments and others 6, , ,7. Dividend payout (%) Cash flow from investing activities -1, , ,665.2 Return on Equity (%) Equity raised/(repaid).. 27,772.5 Return on capital employed (%) Debt raised/(repaid) -6, , Dividend (incl. tax) -6, , ,55. Gearing (x)... Others (incl extraordinaries) -1,51.5-3, ,72.9 Interest coverage (x) 72. 1, Debt/EBITDA (x).1.. Cash flow from financing activities -14, , ,312.1 Change in cash position 1, , ,729.6 Asset turnover (x) Opening cash 32, ,88.2 6,7.1 Current ratio (x) Closing cash 42,88.2 6,7.1 85,429.7 Gross current assets (days) n.m : Not meaningful; QUARTERLY RESULTS Profit and loss account (Rs million) Sep-1 % of Rev Sep-9 % of Rev Jun-1 % of Rev Sep-1 % of Rev Sep-9 % of Rev No of Months Revenue 26, , , , , EBITDA 15, , , , , Interest Depreciation 1, , , , , PBT 13, , , , , PAT 9, , , , , CRISIL COMPANY REPORT 4

5 FOCUS CHARTS & TABLES Rs mn 3, 25, 2, 15, 1, 5, Quarterly sales & y-o-y growth Rs mn 1, 8, 6, 4, 2, Quarterly PAT & y-o-y growth Sep-8 Dec-8 Mar-9 Sales Jun-9 Sep-9 Dec-9 Mar-1 Jun-1 Sep-1 Sales growth y-o-y (RHS) Sep-8 Dec-8 Mar-9 Net Profit Jun-9 Sep-9 Dec-9 Mar-1 Jun-1 Sep-1 Net profit growth y-o-y (RHS) Rs/share EPS Movement in operating and net margins Sep-8 Dec-8 Mar-9 Jun-9 Sep-9 Dec-9 Mar-1 Jun-1 Sep-1 Sep-8 Dec-8 Mar-9 Jun-9 Sep-9 Dec-9 Mar-1 Jun-1 OPM NPM Sep-1 Shareholding Pattern () Dec 29 Mar 21 Jun 21 Sep 21 Promoter FII DII Others Board of Directors Director Name Designation Nayan Mani Borah (Mr.) Executive Chairman & Managing Director Ghanshyambhai Hiralal Amin (Mr.) T.K. Ananth Kumar (Mr.) Nripendra Kumar Bharali (Mr.) Narasimha Raju Narasappa Doddahosahalli (Mr.) Arun Kumar Gupta (Mr.) Sushil Khanna (Dr.) Alexander Koippuren Luke (Mr.) Archana S. Mathur (Dr.(Ms.)) Vinod Kumar Misra (Mr.) Pawan Kumar Sharma (Ca) Baikuntha Nath Talukdar (Mr.) Executive Director-Finance Wholetime Director, Executive Director Nominee Director-Goi Nominee Director-Goi Executive Director-Exploration & Development Additional Disclosure This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT). Disclaimer This report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this report. For information please contact 'Client Servicing' at , or via clientservicing@crisil.com. CRISIL COMPANY REPORT 5