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Oil and Natural Gas Corp (ONGC) posted a 28.1 per cent rise in its net profit for the third quarter ended December 31, at ₹7,126 crore, as rupee depreciation helped it realise higher revenue, despite making record subsidy payouts.
The state-run company had reported a net profit of ₹5,563 crore during the corresponding quarter last fiscal.
The explorer paid ₹13,764 crore in the December quarter to help fuel retailers sell diesel and cooking fuel at subsidised rates, 10.7 per cent more than the ₹12,433 crore it paid a year ago.
“Despite heavy load of subsidy, profits registered a good growth mainly due to rupee depreciation,” said Sudhir Vasudeva, Chairman and Managing Director.
He added ONGC’s net profit would have been higher by ₹7,649 crore if it did not have the subsidy burden.
The company’s sales revenue, however, dipped 1.2 per cent at ₹20,883 crore against ₹21,089 crore.
ONGC said it has made four new discoveries in the third quarter.
The company’s crude oil production has increased marginally by 0.84 per cent to 6.106 million tonnes during the quarter.
The production figure for the corresponding quarter of the previous fiscal was 6.055 mt. However, its natural gas production dipped 0.93 per cent to 6.285 million standard cubic metres.
On Thursday, ONGC’s shares shed 3.29 per cent to close at ₹273.40 on BSE.
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