ONGC Net Profit Zooms 565% To Rs 18,348 Crore In September Quarter

Oil and Natural Gas Corporation (ONGC) announced its July-September quarter results for the financial year 2021-22, reporting a net profit of Rs 18,384 crore, compared to Rs 2,758 crore in the corresponding period last year, marking a sharp growth of 565 per cent year-on-year.

The state-run oil producer's revenue from operations jumped 44 per cent to Rs 24,353.6 crore in the September quarter, compared to Rs 16,917.09 crore in the corresponding period last year, according to a regulatory filing by the company to the stock exchanges today.

"During the quarter, the company has decided to opt for lower tax regime u/s 115BAA of the Income Tax Act, 1961, with effect from FY 2020-21. Accordingly, the company has recognized provision for tax expenses and re-measured its net deferred tax liabilities", said ONGC in its statement today.

The net impact due to availing the option resulted in decrease in deferred tax liability by Rs 8,541 crore and decrease in the current tax liability by Rs 1,304 crore. This tax write back of Rs 7,195 crore inflated the bottom line in the September quarter.

ONGC benefitted from higher crude realizations and higher prices of value added products. The production of both crude and gas declined during the September quarter due to COVID-related restrictions in several parts of the country.

ONGC approved interim dividend of 110 per cent - Rs 5.50 on each equity share of Rs 5. The total payout on this account will be Rs 6,919 crore. The record date for distribution of dividend has been fixed for November 23, 2021 and will be paid to the eligible shareholders on or before December 11, 2021.

On Friday, November 12, shares of ONGC settled 0.75 per cent at Rs 154.65 apiece on the BSE.