ONGC Q2 Results: Oil and Natural Gas Corporation Limited (ONGC) announced its July to September quarter results on Monday, November 11.
The company recorded a 25 per cent fall in net profit to ₹10,272.5 crore in the second quarter of the financial year 2024-25, compared to ₹13,703.38 crore in the same quarter the previous year in the consolidated statements. The figures are in reference to the net profit attributable to shareholders of the company, according to the BSE filing on Monday.
Oil and Natural Gas Corporation Ltd shares closed 2.08 per cent lower at ₹256.90 after Monday's market session, compared to ₹262.35 at the previous market close. The company declared its second-quarter results after market operating hours on Monday.
The company's revenue from core operations rose 7.25 per cent to ₹1,58,329.10 crore in the July to September quarter, compared to ₹1,47,613.68 crore, a year ago.
Even though the company's revenues rose, its expenses outweighed the revenue hike. The total expenses for the quarter rose 15.34 per cent to ₹1,49,780.26 crore year-on-year from ₹1,29,855.53 crore, driven by the cost of materials consumed by the company.
ONGC's main revenue comes from the oil refining and marketing business. The segment witnessed a 9.2 per cent rise in the July to September quarter to ₹1,37,127.09 crore, compared to ₹1,25,568.88 crore in the previous year.
ONGC's profit is attributable to increased crude oil production, and its arrest of degrowth in natural gas production. “ONGC has been able to reverse the declining trend in crude oil production,” the results said.
The company produced 4.576 million metric tonnes (MMT) of crude oil in the September quarter FY25, a 0.7% rise, as per the company's financial results declared on the Bombay Stock Exchange.
The decline in natural gas production was 3.6 per cent in Q1 FY25 over Q1 FY24 and has been brought down to 2.1 per cent in Q2 FY 25 over Q2 FY 24. According to the press release, ONGC ramped up natural gas production in September 2024 and produced 0.3 per cent more compared to September last year.
ONGC's joint ventures fell short of the previous year's second quarter production, leading to the company's consolidated net profit falling 25 per cent. Crude oil production by ONGC's joint ventures fell to 0.329 MMT in Q2 FY25, compared to 0.441 MMT in the corresponding quarter a year ago, according to a press release.
The Board of Directors of the oil refining giant also decided to issue an interim dividend of ₹6 per equity share of the face value of ₹5 per share, according to the company filing.
The company has also set Wednesday, November 20 as the record date for determining the eligibility of the shareholders to receive the interim dividend issue.
“The Board of Directors has declared 1st Interim dividend at the rate ₹6 per equity share of face value of ₹5/- each i.e. @120% for the Financial Year 2024-25. As informed vide letter dated 06.11.2024, Wednesday, the 20th November, 2024 has been fixed as “Record Date” for determining eligibility of shareholders for payment of 1st Interim Dividend,” said the company in a BSE filing on Monday.
