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Shares of state-owned Oil and Natural Gas Corporation (ONGC) surged more than 2 per cent in the morning trade today after the company reported more than doubling of net profit in the fourth quarter of 2011-12.
The net profit in January-March quarter rose to Rs 5,644 crore from Rs 2,791 crore a year ago.
The scrip opened on a strong note and then surged 2.08 per cent to an early high of Rs 261.70 on the BSE. It was later trading at Rs 257.65, up 0.51 per cent.
Similar movement was seen on the National Stock Exchange as well, where the stock opened at Rs 260.60, then jumped 2 per cent to its day’s high of Rs 261.55. It was later trading at Rs 258.05, up 0.64 per cent.
Gains came despite the broader market trading in the negative territory. The 30-share benchmark index Sensex was trading at 16,352.36, down 86.22 points.
ONGC paid Rs 14,170 crore for subsidising diesel, domestic LPG and kerosene against Rs 12,136 crore in Q4 last fiscal.
The subsidy outgo was made good by rupee depreciation — from Rs 47.95 to a US dollar in Q4 2010-11 to Rs 50.29 to a US dollar in the same period of 2011-12 fiscal.
ONGC gets paid for both crude oil and natural gas it produces in US dollar and rupee depreciation is a bonanza for it.
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