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Oil India Ltd
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Ladies and gentlemen, good day, and welcome to Q1 FY '23 Earnings Conference Call of Oil India Limited, hosted by Antique Stock Broking. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Varatharajan Sivasankaran from Antique Stock Broking. Thank you, and over to you, sir.
Thank you, Margaret. Good morning, everyone. It's my pleasure to welcome all the participants and the management of Oil India Limited, represented by Sri Harish Madhav, Director Finance; Shri Pankaj Kumar Goswami, Director Operations; Dr. Manas Kumar Sharma, Director E&D; and [indiscernible] call for this call. I would like to request Mr. Harish Madhav to give initial remark, And then we can move on to Q&A. Over to you, Mr. Harish Madhav.
Thank you, Mr. Varatharajan. Thank you for hosting the conference call for first quarter results of Oil India Limited. Thank you, so much. And we welcome all.
Sorry to interrupt you. May I request you to come a little closer to the phone, please.
Okay. Okay. Yes. I just said, thank you, Mr. Varatharajan for hosting this conference call with all investors and analysts. Thank you Antique Broking. And I also welcome and thanking all the analysts and investors who have joined our call for Q1 results. So let me just introduce, well, along with me today, as Mr. Varatharajan said, is Director of Operations, Mr. Pankaj Goswami; Dr. Manas Sharma somehow could not make it because he is little unwell today. So he's not on the call. We have our Executive Director of Finance, Shri Sanjay Choudhuri and other officers also with us. I will request Mr. Sanjay Choudhuri to give a brief on the results for first quarter, and then we can open for the question/answer.
Good morning to our friends from the analyst and the investor community. As I sit, I'd like to thank [indiscernible] for hosting today's earning call of the company. The company's financial results for Q1 FY '23 were published yesterday and briefly give some indications about the performance of the company, both in physical and financial returns. First, to start with the consolidated turnover of the company for Q1 FY '23 is INR 11,566 crores versus INR 6,201 crores for the corresponding quarter of last year. The consolidated profit before tax for Q1 FY '23 is INR 4,333 crores versus INR 1,678 crores for Q1 FY '22. The profit after tax at the group level of the company for Q1 FY '23 is INR 3,230 crores versus INR 1,214 crores for Q1 FY '22.
Now coming to the standalone results and dealing with the production front, the crude oil production for Q1 FY '23 is 0.779 million metric tons versus 0.748 million metric tons of production in Q4 of FY '22. The production in Q1 FY is over the same figure, indicating an increase of 4.14% over the corresponding period last year.
Natural gas production for Q1 FY '23 is 771 million standard cubic meters versus 734 million standard cubic meters sequentially in Q4 of FY '22, which is an increase of 5.04%. If you compare the production to the corresponding quarter last year, the increase was by 8.44%.
On the financial side, the company's profit after tax in Q1 FY '23 has increased by 206.23% to INR 1,555 crores versus INR 507 crores in the first quarter last year. The company's EBITDA in Q1 FY '23 is [ INR 26.861 ] crores versus INR 1,296.92 crores in Q1 of FY '22. The EPS has increased to INR 14.34 per share in the first quarter of FY '23 as compared to the corresponding quarter of last year, where it was INR 4.68 per share. The average fuel price utilization for the first quarter FY '23 has increased by 67.88% to USD 112.73 per barrel versus $67.15 per barrel in the first quarter of last year.
The average gas price for first quarter of FY '23 has increased by 4.3 per MMBtu to $6.10 per MMBtu. This is against USD 1.79 per MMBtu in the first quarter of the last year.
We'd also like to inform you that as a statement of provision and writeoff against that of INR 270.73 crores in Q1 FY '23 versus INR 6.22 crores during the same period last year. A snapshot of the performance of NRL, profit after tax of NRL for Q1 FY '23 is INR 1,406 crores against INR 678 crores in Q1 of FY '22. And as gross refining margin has improved to $36.66 per barrel in the first quarter of FY '23 from $5.21 per barrel in the first quarter of last year.
The EPS of an is INR 19.12 per share in this quarter of FY '23 versus INR 9.22 per share in the first quarter of FY '23. [indiscernible] remarks on the performance. We are now going to take questions that you may have.
[Operator Instructions] The first question is from the line of Probal Sen from ICICI Securities.
Thank you very much for the opportunity, sir. First question was with respect to the new -- the additional duty that has been imposed, that doesn't reflect, obviously, the net realization. Is that sitting in the other expense rate? Or is it sitting in the statutory duties in the P&L?
The additional asset duty is applicable for [indiscernible]. So how will be reflected on these results [indiscernible] these are only a period of June. Subsequently to be part of the duties.
Sorry about that Yes, sorry. Second question was with respect to the...
[indiscernible] taxes.
Duties and taxes. Got it. Got it. So the second question was with respect to NRL. Just wanted to clarify, you mentioned it $36.66 a barrel this quarter. But the Q1 number you mentioned 5.21, is that...
Yes, you got it right. What are things raises for this year, 36% and the other number was for last year versus $5.21 per barrel for the corresponding quarter last year.
Okay. Including the excise duty benefit last year, it was only $5.21, is it?
Both are excluding excise duty benefits. Both these GRMs, which we have quoted are excluding the excise duty benefit. This is the core GRMs.
So $36 is the core GRM that has been reported this quarter.
Yes, yes.
Okay. Okay. Okay. And last question, sir, just some guidance on overall given that production has picked up for us, just some color on FY '23/'24 production guidance and CapEx guidance, if you can give.
CapEx, we have this year total CapEx outlay of about INR 4,300 crores. And the first quarter, it's, I think, about INR 1,200 crores we have already invested. And for production guidance, our director of operations can handle it.
Corporate production this year, we are targeting -- we are expecting that we'll be getting around 3.2 responding to 2.9 last year. So we'll be getting 3.2 this year. So that is the production target as of now. And as of now, in the present production as the increase in the production compared to the last quarter. We're expecting that we'll be able to achieve that.
Sorry, sir, this 3.2%, you talked about oil transit?
Crude oil production, yes. .
And what about gas, sir?
Also in gas also, we are expecting similar number, around 3.2 this year.
This is for FY '23, right?
Yes, yes.
[Operator Instructions] The next question is from the line of Nitin Tiwari from Yes Securities.
So my question is, production on. So in the analyst meet, you had guided for incremental 1 million tonne of production in about next 2 or 3 years. So where are we like with respect to that guidance right now? And are we still holding on to that guidance? And if you can also help us understand how that production would come. So that would be my first question.
My second question would be around the result numbers. So if you look at our crude oil results, they've been -- like they've fallen over the last decade or so. So where do we see making reserves in about the next 5 or 10 years and mention if we suppose the reserve base doesn't grow. So then what does the time line that we are looking at, like [indiscernible] we would have monetized most of the monetizable results that we have. So that would be my full questions.
Your first question, you are mentioning about our target of 4.0 in '24/'25. So accordingly, we have the plan to grow like this year 3.2, next year 3.6 and next year 4.1. So that is the target as of now. So as I said earlier, we are in line with the production target. We are expecting 3.2 this year and subsequently in the next coming years, we'll be increasing production.
And your second part of the question that we'll work on this production where it come from. Basically, we are targeting our own operating areas as of now. So this is where we have identified 5 [ chocked ] areas within our still existing field. And with that, we are expecting -- we are accelerating our drilling activities on those areas, and we are expecting that we'll be getting more production from this. That is the target.
Regarding reserves, as of now, if you can say that the result -- the replacement ratio is always 1+ for Oil India Limited. That means we're always growing the company. And at the same time, we have already acquired 25 numbers of OALP blocks where we are yet to see any areas resulting now the various activities, exploration activities are going on. Then we have identified 2 locations in those areas we'll be drilling in the next year. And with that drilling, we'll be able to establish new results. That is what we are looking for. That is the growth plan for the company.
Fair, sir. Just I just wanted to clarify on that only. So as you mentioned that our reservoir replacement ratio is more than 1. So does that include natural gas asset. I'm talking about combined reserve, or since you're talking about 2 reserves because when I look at crude reserves, they've certainly come down over last 10 decades -- sorry, last decade so that certainly doesn't look like more than 1 reserve replacement.
It's a combined 1. [indiscernible] numbers for you he's just quoted is a combined result have come down, but then there is a convergence of 3P to 2P to 1P, which is regularly happening. You have to look at results versus production. I think we have been consistently maintaining our [indiscernible] 10 years production equivalent reserves. For crude oil and natural gas, more than 20 years. And that is the status as of right now. And as Pankaj just mentioned that after the new exploration that we are doing in our [ nomination ] areas as well as the new OALP blocks that we have acquired, we expect to add more of the reserves subject to of course discovery. And with that reserve versus production balance, that will continue to be maintained as a good block.
Sir, lastly, if I may ask, so in terms of natural gas, what is the peak production that we can get in case in terms of natural gas keeping in perspective the kind of demand that exists in [indiscernible] the amount of gas we will be able to take out of the Northeastern [indiscernible]. So what is location [indiscernible] could look at?
As of our target is 5 billion. That is what we are expecting now. But we have built up our infrastructure so that we can handle up to 7 billion. So that will be subject to production from the new reserves. So we have built up our capacity like that, but the production target -- gas production target, as you talk about, that is the high we came with now.
So what is the time frame for this first 5 billion?
'24/'25.
The next question is from the line of Sabri Hazarika from Emkay Global.
I have 3 questions. The first 1 is relating to the windfall tax. So can you give us some sense on what exactly is the formula with the [indiscernible]?
The windfall tax, basically, what we have seen from the [indiscernible] law is that nobody -- they're using it for a fortnight, and after fortnight review, the amount of [ relief ] is going to be decided. So starting up with [indiscernible] now. So what we expect is that every fortnight the [indiscernible] will be declared, and accordingly, we'll be paying the taxes on that. However, we have observed one thing is that even after the windfall tax, the company has a net utilization in the crude oil of $25 per barrel, which is actually much higher than anytime in the past, if you keep aside the utilization that we had last year.
Right. No, but I wanted to know that they added looking -- I mean, it seems like they have got some net realization for the companies in mind, right? Is that the way they're looking into it? I wanted to know the -- I mean, the formula, if there's a formula which you are aware of, of course, like it is [indiscernible].
[indiscernible] any formula. This is just numbers which have been declared, and there's no formula which we are aware of. How this has been calculated that, of course, we don't?
Okay. Sir, secondly, I mean, part of this question itself, what is the -- I mean, would you be like netting this windfall tax off from the crude oil revenue and then be calculating royalty and stuff, or would it be like a direct impact on the statutory levels?
[indiscernible] yes, but about royalty, we're not so sure. We will examine the matter, and we have not been able to conclude as far as royalty is concerned, but this will be [indiscernible].
So you are saying that we have to take the naturalization then reduce the $25, $30 impact, and then calculate like 20% tax on that. Is that right, way?
Right.
Our royalty, as of now, we don't think we'll be able to adjust this and make this adjustment, but still we are examining it. And if the people like says, we are able to give, we will tell you, too.
Okay. So being a state subject, I think it will be more tricky to still implement, yes. Secondly, sir, considering your production growth, especially on gas as well as oil, so I mean, save Baghjan, the growth has been quite remarkable, and it is -- I think we are above even pre-Baghjan period volumes also. So till now, which are the fields which have contributed to this growth?
Gas production is mostly completed from the Baghjan field. So this is one field which is producing gas more. Then secondly, for oil, we have identified 2 majorities. One is Balimara. That is near Namrup. And 1 is [indiscernible]. These are the 2 things which are giving constantly more and more oil. So we are expecting these 2 fields will be giving more oil.
The last 1 year, these are the ones which are basically contributing to the growth which has come already for the company, right?
You are right. You are right.
Okay. And third question is that your expenditure, I mean, with respect to the provision as well as certain foundry expenses which has also gone up, I mean, compared to what it used to be in the past. I mean, of course, it has been a volatile thing, but specifically asking about the provision, there was a INR 400 crore provision. So what was this one all about? And can we expect more such provisions coming up? Or is this the end of it?
Actually, we will see the finance for the last 3 years [indiscernible] for that matter. So that provisions don't have a linear -- are not linear throughout the year. And with the events [indiscernible] erosions will happen. It so happened incidentally that last year, the first quarter, we held much of provisions, whereas this year, we have a higher provision in the first quarter. And last year, at the third quarter, we had higher provisions. So basically, if you see, look at the company's numbers, provision on an annual basis works around INR 650 crores, INR 700 crores average weight on a year on an annual basis.
Okay. So now in the first quarter, yes, we had in excess of INR 400 crores provision. That was because we had a writeoff of a well amounted to around INR 270 crores. And another INR 144 crores will take a provision for the NELP whether any PL had expired, and provision is expected. However, this has been taken as a matter of abundant precaution because we are really expecting the extension to come through in the next few months.
Okay. So there can be [indiscernible] reversal as well on this side.
It is quite, quite possible, yes.
And INR 270 crores was on which well because we cannot?
This includes one well up on Bangladesh also, but it...
It [indiscernible]
And then two does [indiscernible].
Two wells in Northeast, one well in Bangladesh, right? Okay. Sir, just one last add up and one last question. Actually, it's related to your notes to account. So I mean, the Supreme Court form committee on that Baghjan be last. So they have given this INR 1,200 crore figure. You have stated that mostly it has been covered. So is there any more, I mean, liability pending, or we are like fully sorted in terms of Baghjan.
See, if you talk about liability in the financial, the liability can only be taken in the financial, whether it can [indiscernible] established. Now this figure has moved down all the time. We started off with a 2,000 crore figure [indiscernible] 2,000 crore. Then it came down to 1,200. Now it probably will come down to 950 or so. We really don't know which way this is going. And these are just numbers which are put up by individual. The court has not yet been cognizant of these numbers or given any order based on these numbers. So these are just numbers which are floating around [indiscernible].
Okay. The court has not given any orders?
No, no. None whatsoever.
Not even heard, just a submission of a report, which has not even been heard in the open court so far.
Next question is from the line of Somaiah V. from Spark Capital.
So question just to [indiscernible]. So you had given the GRMs excluding executive benefit? Or could you help us with the executive benefit this quarter and last quarter?
I don't have the GRM -- sorry, it's earlier also these questions have been asked, but GRMs total excise duty numbers are not there. But my one suggestion is this that all competitive performance of the refinery is core GRM, which matters. This is some additional benefit with the refinery is a claim all the Northeast facilities are having. So if you're going to compare the [indiscernible] family's performance with other refineries, I think the core GRM that we are declaring, that is the right number to compare. And excise duty benefits each refinery, each company has certain concessions, duties, some wealth concessions. All these things are there, which is individual to each specific business or part of the business, depending on the sector or the location where it is established. So I don't think that is too much important. But it's still based on the excise duty numbers of petrol and diesel. I think annually, the refi has in the total been about INR 2,000, INR 2,400 crores annually. On excise duty part, based on the current excise duty.
Got it. Sir, just one clarification there. So from Q4 to Q1, because there was this excise duty revision cut in month of May, so on a quarterly basis between the 2 quarters, so the excise duty benefit directionally, has it reduced to that extent or...
Naturally, excise duty has reduced from Q4 to Q1. The resultant effect has been factored into the financial results of [indiscernible].
Got it. So second thing on NRL. Can you provide an update on the expansion plans, the timing and from -- I mean, the funding perspective, the equity contribution from standalone and the timing of the cash flows?
The excise duty is going on as per scheduled. It's fully online and expected to get completed by project end of 2025. And the Numaligarh Refinery company has start up a funding of about INR 19,000 crores from the conversion of banks. And currently, the refineries which has good cash flows over pass-through period. So it is utilizing the internal cash flows plus some drawdown from the funding arrangements which has been tied up on the bank. So equity contribution right now in current financial year is not expected. Maybe next financial year after the internal forces which are being generated into Numaligarh Refinery, they are adopted after that only some equity contribution will come. But I think we have indicated earlier also as per the funding plan approved for this expansion project out of a current INR 28,000 crores investment, about INR 3,000 crores will go on the all [ ELBS ] 20% expedition.
Got it, sir. Sir, can you just help us out with the net debt number and NRL and also consolidate net debt.
Could you just repeat please?
The net debt at end of the quarter at NRL and also on a consol basis.
We have done around INR 1,350 crores as of now, at least the total funding tied up. So that is the only debt which the company has. And on consolidated basis, we -- our total debt, I will just tell you, it must be around [ INR 14,000 crores ] [indiscernible] 3,500 [indiscernible] so about INR 15,000 crores [indiscernible] on consolidated debt. In the mid-term, we can tell you the final number [indiscernible].
So this INR 15,000 crores is a gross number?
Consolidated debt for the company, Oil India, including 70% share of annualized debt.
The next question is from the line of Gazal Gupta from JM Financial. .
I just have one question related to the subsidy. So just wanted to understand that any idea that what will happen to the $40 subsidy. Will it go to the OMC, et cetera.
We are not able to understand. Can you repeat please?
Hello.
Can you repeat the question. We could not understand.
I wanted to understand the subsidy of $40. What is going to happen this year? Is it going to go to the OMCs? Any clarity on that?
What is this? There's no subsidy of $40.
The -- will go to the consolidated fund as it goes in excise duty.
There's no subsidy. This is the special excise duty, which has been enabled by the government. So as any other taxation, this will go through the normal CP of the government of India.
The next question is from the line Kanak Kumar Bucha from Bucha and Sons.
When will be the ex date for the dividend?
Sorry?
Ex date of the dividend. You have not announced yet.
No, we have not declared any dividend for the [indiscernible] after the Q1 results.
[Operator Instructions] The next question is from the line of [ Kishan Mundhra from Antique Research ].
Just one question from my end. Sir, regarding the CapEx that you plan to spend, can you just give the bifurcation between exploration and development expenditure, please?
Yes, broadly, about 60%, 65% goes into the direct exploration and development activities. And about 15%, you can also say that is part of exploration development because that is all capital infrastructure that we -- but we don't categorize this as exploration development expenditures. All infrastructure facilities, et cetera, about 30% of the total plant expenditure is that, and maybe around 15% goes on an average to the overseas and other investments. So 60%, 65% of the total expenditure, it goes directly into the exploration and development.
And between exploration and development, would you be able to [indiscernible]?
You can say almost 60/40. [indiscernible] exploration [indiscernible].
The next question is from the line of Vishnu Kumar from Spark Capital.
Am I audible? Hello.
Yes, you're audible. Request you to speak a bit louder.
This royalty computation, I mean, have you paid for the month of July yet, or you're going to pay this -- I mean, just trying to understand the workings again as one of the previous participants was also asking. So how do you compute royalty with the sets, without the sets? How does this 17,000 gets adjusted or not? If you could just give us some more clarity on that?
Royalty [Technical Difficulty]
Sorry, I'm not -- there is a lot of muffling of voice. I'm not able to properly hear you.
Yes, can you hear me now?
Yes, now better sir.
The royalty spread will be 20% on the sales value for crude oil and 10% for natural gas.
So we will not get any credit for the 17,000 that we are paying?
No, we won't get any pay for it. There are some adjustments for the post [indiscernible] which are minor, basically. For this INR 17,000 crores, as we had explained earlier also about the 17,000 in terms of excise duty. As of now, our understanding is that we will not be able to adjust it against the royalty payment.
Is there any representations that you've made and any response that you've got to know from the government on this.
We have not received any response, but the representation certainly we have made to have a relook into this whatever windfall taxation, et cetera, which the government has daily. But government, as they have declared earlier also, they have reviewed it on a fortnightly basis. First, review after 20 days. The second review after 14 days. It has happened already. So -- and we even see corrections in prices. This review will continue.
Sir, apart from this, we also had assess earlier to this. Would that -- would there be some adjustments for that? Or even if the -- for that sense, also, we'll have to pay on gross realization?
[Technical Difficulty] at the listed price.
Sorry, you're not audible, sir.
The [Technical Difficulty] you're talking about rent?
Yes.
They are talking about [indiscernible] if I'm not wrong. The question is related to sales.
Whatever that -- as we made clear, on royalty, there are 2 main levies on crude oil and natural gas. On crude oil, it is royalty and set. So this special additional duty on oil and gas which has been levied. We will not be able to adjust for royalty payment, but we will be able to adjust it for set payment. So set payment, suppose $100 fuel price minus $30 or $25 windfall tax. On $70, only set will be paid.
The next question is from the line of Vikash Jain from CLSA.
So I need just a couple of things to round up. All the set to, what are the total one-offs? So this 270 crores, which has been mentioned, that is a part of provisions, so that is a part of driver exploration [indiscernible] Plus what is the ForEx loss? Any other provisions which are one-offs, could we just get that rounded-up number?
The provision for the 270 crores has gone away. Another 144 crores we have given a provision for NELP penalty. These are the 2 big main figures, which make that [indiscernible] crore figure.
And ForEx loss, what is the number?
ForEx loss [indiscernible]. About INR 200 crores.
INR 200 crores, okay. And this is also sitting in other expenditure, right?
Yes.
And Harish, just to get this clarification on Cess. This is the assessment of the company? Or have we got a clarification from the government also that a net-off process will be a lock?
[indiscernible] production based on our assessment, which has been valued by the tax expert consultants.
Has been validated by the tax authorities?
No, no, no, by our tax experts.
Okay, by your tax experts. Okay. And based on that, I think the Cess is paid every, I think, 7 days after the month ends or something like that. So has that payment been made based on that only?
This month, the payment is being made based on these calculations.
Okay. And that you're reasonably confident. Royalty is something that you have relatively low confidence on?
Absolutely, right.
Anything else that -- anything that we are -- given this action by the government, it is uncertain how for a lot of us, this is to be read as the government not wanting to allow for any kind of higher profitability measures for upstream. If that is really the right way to look at it, how are we looking at gas price revision, which is due in less than 2 months from now?
You see internationally for the developing countries. Super-low profits or good -- is not allowed by these entities. This is not a thing which is only the [indiscernible] India. It is driven across developing countries. So some kind of funds are created when very, very crude hit above 100, 120. So all of that.
Vikash , I'm sorry, I'm interrupting. We are a listed company. We are a public sector company. We have to abide by whatever the taxation structure the government provides. Now there is a policy decision by the company. We have to follow that policy provision.
Sir, I'm not even asking on that. I'm just asking what is your [indiscernible]
Vikash, please understand, we will not be able to give you any view why this has been done and all those things.
No, I'm not asking on the view on the [indiscernible]. I'm asking on the -- have we heard anything on the gas price as well? Is there...
Gas price, we have not heard anything. As of now, the formula stands. So as per the formula, as per the international prices, which are factoring into that price -- in that formula, whatever will be the price revision, to our understanding, as of now, there will be no change. And whatever prices are above that, will be implemented. But afterwards [indiscernible] makes any policy decision, we are not [indiscernible].
Sure. Of course, of course. No, I was just understanding if you -- if there's any movement that we have seen to alter that.
No we are not aware of any such movement.
Okay. And as per your best calculations, what is the kind of rough prices that we are looking at? Is it much closer to $10 or $9 to $10 plus or...
I think it's a bit difficult for us to make any mention on this conference [indiscernible]. But the market, everybody knows that there's a rising trend [indiscernible] but certainly higher. I think you also must be estimating that better than us.
The next question is from the line of Sabri Hazarika from Emkay Global.
So I just have a follow-up question on your, I think, GST and service tax. So your notes, they account that the Assam government has agreed to this adjustment, right? But the Rajasthan government has not. Is that the right assessment?
Actually, we have got a stay from the [ Raji ] High Court regarding the [indiscernible] the Assam government against any oil production. The hearing on merit has not taken place. But the same is also listed in the Rajasthan High Court, which has never told me come up for the hearing. When it comes up for the hearing on the same ground, we expect the same kind of ruling from the court.
And Sabri, this is not a state subject in any case. This is a central levy. So state government agreement on [indiscernible] is not material, or it is not in picture at all.
Okay. So High Court, which has actually put a stay so you have -- you have not -- I mean, in Rajasthan, it will come basically, your hearing, and you are expecting some kind of a decision there, also, right?
[Operator Instructions] The next question is from the line of Nitin Tiwari from Yes Securities.
Sir, just had a clarification question on the calculation of royalty and Cess. So what's the rate of royalty and Cess, and are those calculated on sales price? I mean, if you can just make me understand on what basis these calculations are done. So correct me if I'm not right in both [indiscernible] on sales price?
They both are at 20% of sales price. There are deduction [indiscernible] in both the cases or all with a reduction of [indiscernible] to INR 2,800 per MT. In terms of royalty, you set up the SED and the NCD. Now in terms of Cess [indiscernible].
All right. So basically, both [indiscernible] allowed in both cases. Sir, why is that happening that given that both are calculated on the same price, and in case of Cess, you are allowed the reduction of extra levy that has happened. But in case of royalty, we're not sure. So we can't help but understand that if [indiscernible] why that difference is coming?
Sorry, actually, we appreciate your question. Actually, sir, both the levies are not collected under the same legislation. First point is that.
Both are not on the same side, Okay.
Both are levies collected under totally different legislation. So that is why the capitalization method also differs. First thing is that the sales which we are paying, that sales is collected as a duty of excise. So all the provisions of excise are applicable for calculation of sales. So accordingly, some expense are allowed, which we are doing. But as far as royalties terms and royalties payment now [indiscernible] in development later, where everything is specifically mentioned. So there is no scope for any alteration in the adjustment or in the calculation. So that is why some difference exists as far as calculation part is concerned.
[Operator Instructions] The next question is from the line of Avishek Datta from Prabhudas Lilladher.
Sir, sorry to -- I missed the initial part. So I just want some clarity on NRL EBITDA and GRM, sir?
Just one minute. The NRL GRM is $36.66 per barrel.
Can you just repeat that number?
Yes. It is $36.66 per barrel.
Okay. And what is EBITDA?
EBITDA is over INR 2,000 crores.
Can you repeat that?
INR 2,000 crores.
The next question is from the line of [indiscernible] an individual investor. .
I just had a very quick one. If you were to apply the windfall tax, which was -- it's coming from July, but just for calculation purposes on this quarter, how would that quantum be in totality? Like, would you be able to give some understanding?
[indiscernible] it is difficult to get an assessment.
I'm not asking the exact number, just a guesstimate, if you take the last windfall tax...
It would be really difficult because if you see the crude prices now, they are leveling in $90, $95 range. And from $120, when the decision was taken for [indiscernible], it is now 95, 2 corrections on format basis have already taken place. Basically, in the quarter, we are looking for 6 revisions in the duty structure. So unless we arrive maybe sometime in the month of September, we will be able to give you some estimate because then we will know what is the current crude price, and what is the price trend in 2 months period. So as of, now it'll be difficult for us to give you any quantum of yesterday.
[Operator Instructions]
Excuse me, my request will be since we are already over the hour, and we have some other schedule, can we have last 2 or 3 questions right now?
Actually, sir, we don't have anyone in queue. So we can close.
In that case, possibly we can close the call, Mr. Varatharajan.
Sure. As there are no further questions from the participants, I now hand the conference over to Mr. Varatharajan Sivasankaran for closing comments.
Thank you, Margaret. I wish to thank all the participants for taking out time to join the call. And I wish to thank the management for giving us the opportunity to host the call. Mr. Harish and his team, if you have any closing comment, please go ahead, sir.
Thank you, once again, Mr. Varatharajan and your company, Antique Broking for hosting this conference call on behalf of Oil India Limited. And I once again thank all the participants for their participation, their interest in the company and raising so many questions, making [indiscernible], which hopefully, we have been able to clarify most of those things. In case any further questions, any queries, you can reach us, our colleague, Mr. Sanjay Choudhuri, Mr. [indiscernible], at any point of time, or to me also, and we'll be able to -- very, very happy to satisfy all the queries of the investors. So thank you very much, and thank you very much once again to all the participants and Antique.
Thank you. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.