Latest news with #OilMarketingCompanies
Time of India
2 days ago
- Business
- Time of India
Jagatjit Industries eyes ₹550 crore annual revenue from new grain-based ethanol plant in Punjab
Jagatjit Industries Ltd on Monday said it has commenced commercial production of its grain-based ethanol plant in Punjab and is expecting an annual revenue of ₹550 crore from the plant. The capacity of this plant, located at Hamira in Kapurthula district of Punjab, is 200 kilolitres per day. "Running at full capacity, the facility is expected to generate up to ₹550 crore in annual turnover and widen the Group's EBITDA margin by approximately 8-10 percentage points," the company said in a statement. In its first, partial year of operation, the plant should add about Rs 300 crore to EBITDA (earnings before interest, taxes, depreciation and amortisation). At full capacity, it could supply up to 65-70 million litres of ethanol per year to Oil Marketing Companies (OMCs). "With a Rs 550 crore annual topline opportunity and an 8-10 per cent margin lift, it brings stable, high-quality revenue that strengthens our balance sheet and funds our next phase of growth across premium spirits and new markets," Roshini Sanah Jaiswal, Promoter & Executive Director of Jagatjit Industries, said. Founded in 1944, Jagatjit Industries Limited (JIL) manufactures Indian Made Foreign Liquor (IMFL) and Country Liquor (CL) in the country. The company is listed on the BSE. The company has plants in Punjab along with other manufacturing units in Behror, Rajasthan.
Zawya
23-06-2025
- Business
- Zawya
India will ensure domestic fuel supply despite Middle East tension
NEW DELHI: India will take measures to safeguard domestic fuel supplies, oil minister Hardeep Singh Puri said on Sunday, after U.S. attacks on Iran's nuclear sites raised the risk of disruption of Middle Eastern oil and gas and soaring energy prices. Energy markets and investors were already on high alert since Israel launched airstrikes across Iran on June 13, fearing disruption particularly through the Strait of Hormuz. Around 20% of global oil and gas demand flows through the Strait that Iran has long threatened to close it to exert pressure on the West. "We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks... we have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now," Puri said on social media platform X. "Our Oil Marketing Companies have supplies of several weeks and continue to receive energy supplies from several routes. We will take all necessary steps to ensure stability of supplies of fuel to our citizens," he said. India, the world's third biggest oil importer and consumer, gets less than half of its average 4.8 million barrels per day of oil imports from the Middle East. Separately Puri told local news agency ANI that India would increase crude supplies from other sources if required. "We are in touch with all possible actors... It is our hope, and we all expect that the situation will result in calm and de-escalation rather than further escalation," he said. Earlier in the day Indian Prime Minister Narendra Modi received a phone call from Iranian President Masoud Pezeshkian, in which he was briefed about the conflict between Iran and Israel, India's foreign ministry said.
Reuters
22-06-2025
- Business
- Reuters
India pledges to secure fuel supply amid Middle East turmoil
NEW DELHI, June 22 (Reuters) - India will take measures to safeguard domestic fuel supplies amid rising tensions in the Middle East following U.S. and Israeli attacks on Iran's nuclear sites, oil minister Hardeep Singh Puri said on Sunday. India, the world's third biggest oil importer and consumer, has diversified its crude import sources over the last few years, reducing its dependence on the Strait of Hormuz. It gets less than half of its average 4.8 million barrels per day of oil imports from the Middle East. "We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks... we have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now," Puri said on social media platform X. Investors and energy markets have been on high alert since Israel launched airstrikes across Iran on June 13, fearing disruption to oil and gas flows out of the Middle East, particularly through the Strait of Hormuz. Iran has long used the threat of closing the Strait, through which around 20% of global oil and gas demand flows, as a way to ward off Western pressure which is now at its peak after Washington carried out strikes on Iranian nuclear sites. "Our Oil Marketing Companies have supplies of several weeks and continue to receive energy supplies from several routes. We will take all necessary steps to ensure stability of supplies of fuel to our citizens," Puri said.
Business Recorder
13-06-2025
- Business
- Business Recorder
FY26 budget delivers little for oil, gas and refineries
The Federal Budget for FY26 has brought a mix of continuity and subtle policy shifts for Pakistan's oil and gas sector. While the government's focus remains on fiscal consolidation and meeting IMF targets, the budget introduces some changes that carry implications for the Oil Marketing Companies (OMCs), the Exploration & Production (E&P) sector, and the refining industry. For the OMCs, the budget continues to rely heavily on the Petroleum Development Levy (PDL) as a key non-tax revenue source, setting an ambitious collection target of Rs1.468 trillion, up 26 percent from last year. This reinforces the government's dependence on petroleum products to bridge fiscal gaps, with implications for fuel pricing and affordability. In addition, the government has introduced a carbon tax of Rs 2.5 per litre on petrol, diesel, and furnace oil. While this aligns with global trends toward climate-conscious fiscal measures, the cost will likely be passed on to consumers. However, the estimated Rs40 billion in expected collections from this tax is not anticipated to materially impact OMC margins, making the measure relatively neutral for the sector. Another noteworthy measure is the imposition of PDL on furnace oil, which was previously exempt. While furnace oil is a declining part of the national energy mix, its taxation signals the government's intent to extract revenue from all available streams. In the short term, this could slightly impact industrial demand, but for OMCs, the pass-through mechanism likely cushions any significant adverse effects. In contrast, the E&P sector has seen no major direct changes in this year's budget. There were no revisions to royalties, levies, or corporate tax rates specific to exploration or upstream activity, signalling a continuation of the status quo — neither incentivized nor penalized. That said, the broader macroeconomic framework could still influence the sector. The government aims to reduce the fiscal deficit to 3.9 percent of GDP, its lowest in over two decades, and maintain a primary surplus of 2.4 percent of GDP. If achieved, this could reduce fiscal stress and help address the circular debt problem, a persistent challenge in the gas and power supply chain that often impacts payments to upstream players. One potentially indirect concern for the E&P sector is the reduction in power sector subsidies to Rs1 trillion, down 13 percent year-on-year. This could exert pressure on power producers and, by extension, affect the payment cycle to gas suppliers — a scenario that E&P companies will monitor closely. Despite expectations, Budget FY26 delivered little to energize the refining sector. Analysts were anticipating clarity on the Refinery Policy 2023, particularly in relation to incentives for upgrading to Euro-V standards, deemed duty reforms, and a revised pricing mechanism. However, the budget remained silent on all fronts. There were no new incentives, tax exemptions, or subsidies introduced for refinery upgradation or capacity expansion. This policy inaction continues to weigh on investor sentiment, especially as refining margins remain under pressure and projects requiring substantial capital investment await regulatory clarity. Some minor relief came through customs duty rationalization on select raw materials and intermediates used by the sector, but these measures are insufficient to offset the broader uncertainty. The refining sector remains caught in a holding pattern, operating under legacy frameworks while regional peers push ahead with modernization. Without decisive policy support, the sector risks falling further behind both in terms of efficiency and environmental compliance. While Budget FY26 does not revolutionize the outlook for Pakistan's energy sector, it maintains a careful balance. The OMC sector faces revenue-linked levies that reflect the government's fiscal needs but stops short of heavy-handed intervention. The E&P sector enjoys continuity but without strategic stimulus. The refining sector, however, stands out as a missed opportunity — a space where expectations of reform were not met, leaving stakeholders in limbo. As Pakistan continues its fiscal consolidation journey under IMF oversight, the energy sector — particularly its pricing, investment, and taxation dynamics — will remain a crucial pillar of revenue and economic management. The real test will lie in execution: managing fiscal targets without compromising the long-term health and modernization of the energy value chain.
Time of India
09-06-2025
- Business
- Time of India
Indian companies profit growth slows in FY25, capex weakens amid soft demand: Nuvama
The profit growth of Indian companies slowed down in the financial year 2024-25, as soft demand, weak top-line performance, and slowing capital expenditure weighed on overall corporate performance, says a report by Nuvama Research . According to the report, the aggregate profit after tax (PAT) for companies in the BSE500 index (excluding Oil Marketing Companies) grew just 10 per cent year-on-year in Q4FY25, and 9 per cent for the full FY25, down from a stronger 21 per cent growth recorded in FY24. The report said "Q4FY25 PAT growth for BSE500 (ex-OMCs) rose to 10 per cent YoY (Q3FY25: 8 per cent), though top line stayed weak, due to cost rationalisation (wage bill growth just 5 per cent) and a low base". Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo In Q4FY25, profits grew 10 per cent from the same quarter last year, slightly better than the 8 per cent growth seen in Q3FY25. This was achieved mainly through cost-cutting measures, including a modest 5 per cent growth in wage bills, and the benefit of a low base. While sectors like metals, telecom, chemicals, and cement posted improved profits, segments such as public sector banks and industrials, which had led growth in FY24, saw a slowdown. Live Events The report also pointed out a significant drop in capital expenditure (capex) growth. Despite strong operating cash flows, India Inc's capex grew just 6 per cent in the second half of FY25, compared to 20 per cent growth seen in FY23 and FY24. While this cautious approach might be seen as positive from a governance and valuation standpoint, it also reflects weak demand conditions and may pose risks to future earnings. Mid- and small-cap (SMID) companies, which had underperformed large-cap companies for most of FY25, showed some profit recovery in Q4FY25, supported by cost control and a low base. However, for the full year, their performance aligned more closely with large caps, after outperforming them in FY24. The report described FY25 as a "year of reconciliation" where several trends from FY24 moderated. Profits, revenues, and capex all grew by around 8-10 per cent, returning to pre-COVID trends. Looking ahead, the outlook for FY26 remains uncertain. The report noted that earnings estimates for FY26 have been downgraded by 2 per cent, and one-year forward earnings per share (EPS) projections have stagnated, similar to trends seen before the pandemic. Nuvama said the Street currently expects 15 per cent earnings CAGR for FY25-27, but flagged downside risks due to weak demand, slowing credit growth, corporate cost-cutting, and uncertain export conditions. In summary, FY25 marked a slowdown for India Inc, with all major financial indicators reconciling with a subdued top-line performance, and the outlook for FY26 remains cautious.
