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Oil exploration major ONGC’s March quarter profit jumped a neat 12 per cent Y-o-Y to ₹4,416 crore. This was quite in contrast to the dip of 64 per cent in the December quarter and 11 per cent in the September quarter. The March quarter profit jump was despite revenue dipping 24 per cent — a result of the crude oil rout that cut ONGC’s realisation to $35 a barrel from nearly $56 in the year-ago period.
What buoyed the company’s bottom-line in the March quarter were one-off credits. The first was a write-back of ₹852 crore provided as impairment loss in the December quarter due to fall in crude oil price. The next was a write-back of ₹1,548 crore provided earlier towards acquisition cost and cost of exploratory wells in the company’s Krishna Godavari block; this provision was reversed on receiving some approvals.
But for these write-backs, ONGC’s March quarter profit would have been much lower than that in the year-ago period.
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