ONGC Q3 Results: Profit Slips 31%, Misses Estimates

Oil & Natural Gas Corp.'s net profit dropped 31% in the October–December quarter of the current financial year, missing the Street's expectations (Photo Source: Creative Commons)

Written by
Divya Prata
Written by

Divya Prata

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Oil & Natural Gas Corp.'s net profit dropped 31% in the October–December quarter of the current financial year, missing the Street's expectations.

The energy major's bottom line stood at Rs 8,240 crore as compared to Rs 11,984 crore in the same quarter of the preceding fiscal, according to an exchange filing on Friday. Analysts tracked by Bloomberg had pegged the estimated net profit to be Rs 9,897 crore.

Revenue from operations for the quarter ended December slipped marginally to Rs 33,716.8 crore. Bloomberg analysts' consensus estimate for the revenue stood at Rs 32,254 crore.

ONGC's earnings before interest, taxes, depreciation, and amortisation rose 4% to Rs 18,968 crore, while the margin expanded to 56.25%. Analysts had estimated Ebitda and margin to be Rs 17,958 crore and 55.7% respectively.

ONGC Q3 FY25 Highlights (Standalone, QoQ)

Revenue down 0.49% to Rs 33,716.8 crore versus Rs 33,880.9 crore (Bloomberg estimate: Rs 32,254 crore).
Ebitda up 4% to Rs 18,968 crore versus Rs 18,236 crore (Bloomberg Estimate: Rs 17,958 crore).
Margin at 56.25% versus 53.82%, up 243 basis points (Bloomberg Estimate: 55.70%).
Net profit down 31% to Rs 8,239.9 crore versus Rs 11,984 crore. (Bloomberg Estimate: Rs 9,897 crore).

ONGC Announces Dividend

The board of directors approved an interim dividend of Rs 5 for each share held by stakeholders, as per a press release. The total payout on this account is expected to be Rs 6,290 crore. The record date for distribution of dividend has been fixed for Feb. 7, 2025.

This marks the second interim dividend issued by the company this fiscal, in addition to the first interim dividend of Rs 6 declared earlier in November.

Key Highlights

ONGC maintained an increasing trend in crude oil production for two consecutive quarters. Standalone production during the third quarter stood at 4.653 million tonnes, registering a growth of 2.2% over the corresponding quarter of fiscal 2024.

The energy major reversed its decline in gas production, with standalone natural gas production during the quarter in question rising 0.3% to 4.978 billion cubic metres.