ONGC Q4 Results: Profit Drops On Rs 12,000 Crore Tax Provisions
Oil and Natural Gas Corp. reported a decline in consolidated net profit for the fourth quarter on account of higher operational costs and lower margin.
The state-run oil explorer and producer's net profit fell 52.73% year-on-year to Rs 5,701.46 crore in the quarter ended March 31, 2023, according to its exchange filing.
ONGC Consolidated Q4 FY23 Highlights (YoY)
Revenue from operations rose 5.2% to Rs 1,64,948.99 crore.
Operating profit, or Ebitda, fell 14.57% to Rs 20,996.73 crore on higher cost of material consumed. The cost of materials consumed was higher at Rs 40,726.23 crore as compared with Rs 38,882.48 crore a year ago.
Operating margin fell sharply by 354 basis points to 14.57%, as against 18.11% over the same period last year.
On a standalone basis, ONGC reported a loss of Rs 247 crore as compared with a profit of Rs 8,829.54 crore a year ago.
"During the quarter and year ended March 31, 2023, the company has provided Rs 9,235 crore towards disputed taxes for the period from April 1, 2016, to March 31, 2022, together with interest thereon up to March 31, 2023 towards the ST/GST on royalty and being material has been disclosed as an exceptional item," the company said in its profit and loss note.
"Further, a similar provision of Rs 2,872 crore has also been made during the quarter and year ended March 31, 2023 for disputed taxes for the financial year 2023."
Standalone Ebitda and Ebitda margin also dropped during the quarter. Ebitda fell 26.03% to Rs 11,871.42 crore vs Rs 16,049.47 crore a year ago. Ebitda margin was down at 43.33% vs 62.59% a year ago.
Shares of ONGC closed 1.62% down as compared with a 1.02% gain in the benchmark Sensex.
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