ONGC Q2 Results: Standalone profit rises 17% YoY to ₹11,984; ₹6 per share interim dividend declared; check ONGC share price

Oil and Natural Gas Corporation (ONGC), India's largest government-owned gas-producing company, announced its financial results for the second quarter of the current fiscal (Q2 FY25) on Monday, November 11. The company reported a 17% year-on-year (YoY) increase in its standalone net profit, rising to ₹11,948.02 crore from ₹10,238.10 crore in the same quarter of the previous year.

The rise in profit is attributed to lower windfall tax levied by the government as oil prices dropped.

The company’s revenue from operations is at ₹33,881 crore for the reporting quarter, a 4% YoY decrease from ₹35,163.04 crore in the year-ago period. Other income more than doubled to ₹4,765.64 crore in the quarter, according to the company's stock exchange filing.

ONGC stock closed 2.02% lower at ₹257.25 on the NSE on Monday, November 11. Shares of the company are trading 0.6% up currently at ₹258.45 apiece on Tuesday, November 12.

Consolidated results

The company posted a 25% fall in the consolidated net profit to ₹10,272.5 crore in Q2 FY25, as compared to ₹13,703.38 crore in the same period last year.

The revenue from core operations rose to ₹1,58,329.10 crore in the July-September quarter, increasing by 7.25% from the previous year’s figure of ₹1,47,613.68 crore.

The total expenses for the quarter increased by 15.34% YoY to ₹1,49,780.26 crore from the previous year's figure ₹1,29,855.53 crore. The increased expenses were driven by the cost of materials consumed by the company, according to the BSE filing.

Interim dividend declared

The board declared the first interim dividend at the rate of ₹6 per equity share of the face value ₹5 for the financial year 2024-25. The record date to determine the eligible stakeholders has been set as November 20.

Key highlights

• ONGC posted an EBITDA of ₹18,236 crore in the quarter ending September 2024, with margins reaching 53.8% during the period.

• The company paid ₹7,829.51 crore in statutory levies in Q2 FY25, down from ₹10,791.09 crore in the same quarter last year and ₹9,771.95 crore in Q1 FY25 (April-June quarter).

• ONGC received $78.33 per barrel of crude in July-September, down from $84.84 in the previous year. The price of gas produced was unchanged at $6.5 per million British thermal units.

• The standalone crude oil production during H1 FY24 was 9.204 million tonnes, marking a 0.8% increase.

• On the gas production front, the company reported a 2.1% YoY decline in Q2 FY25, improving from the 3.6% decline posted in Q1 FY25 over Q1 FY24. It produced 4.912 billion cubic metres (bcm) of gas in July-September, down from 5.018 bcm in the year-ago period.

• For the first half of FY25, the company reported a net profit of ₹20,922.12 crore, similar to ₹20,765 crore in April-September 2023.

• Segment wise, revenues from the offshore segment dropped to ₹23,004 crore in the reporting quarter as compared to ₹23,468 crore in the same quarter last year. Onshore revenues also saw a decline, falling to ₹10,871 crore in the July-September quarter, down from ₹11,694 crore in the same quarter of last year.