Oil and Natural Gas Corporation (ONGC) on Friday posted a jump in its quarterly profit to ₹18,347 crore, up 565 per cent from the previous year’s same period, on the back of robust sales and write back of net tax amounting to ₹7,195.35 crore. Sequentially too there was an increase in PAT by 323.32 per cent. The company declared an interim dividend of 5.50 per share in its board meeting held on Friday.

Its revenue from operations rose 44 per cent to ₹24,353.6 crore in the second quarter. Profit before tax rose 65.21 per cent quarter-on-quarter to ₹11,152.36 crore and 118 per cent year- on-year, as per filing on the exchange.

According to the company, it chose the lower tax rate of 22 per cent under the new tax law against the earlier rate of 30 per cent, resulting in a decrease in deferred tax by ₹8,541 crore and a reduction in current tax by ₹1,304 crore.

ONGC said it has assessed the possible impact of continuing Covid-19 on the basis of internal and external sources of information and expects no significant impact on the continuity of operations, useful life of property plant and equipment, recoverability of assets, trade receivables etc., and the financial position of the company on a long-term basis

“However, the revenue for the quarter and half-year ended September 30, was impacted by low crude oil and natural gas prices due to the pandemic and volatile global crude oil and natural gas markets. Accordingly, the same are not comparable with those for the quarter and half-year ended September 30, 2020,” it said.

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