ONGC slips ahead of March quarter earnings

Large Cap
May 26, 2023, 5:56 pm

According to Kotak Institutional Equities, ONGC's net sales for the March quarter are expected to increase by 4% YoY to Rs 35,772.5 crore, while the profit after tax is predicted to increase by 24% YoY to Rs 10,957.9 crore.

The Story

Ahead of the oil exploration and extraction company's March quarter earnings report on May 26, shares of ONGC fell at the beginning of the month.

Kotak Institutional Equities anticipates a 2% sequential reduction in EBITDA, led by a decrease of 4% in oil sales from quarter to quarter. A decrease in windfall taxes would probably counterbalance an 8 percent sequential decline in crude oil prices, it said.

Overall crude oil sales volumes of 4.5 MMT, down about 4 percent quarter over quarter and 12 percent year over year (YoY), have been factored in by the brokerage business. It anticipates that gross crude price realization will fall 8 percent sequentially to $80 per barrel, while net oil price realization after royalty, windfall tax, and cess will be $53 per barrel, up 1% QoQ. Natural gas sales volumes are anticipated to decrease around 1% QoQ but up 1% YoY at 4.16 cm.

ONGC's March quarter net sales are anticipated to increase by 4% YoY to Rs 35,772.5 crore, but they could fall by 7% sequentially. The profit after tax is anticipated to increase by 24% YoY to Rs 10,957.9 crore. As per Kotak Institutional Equities.

During the reviewed quarter, profitability was also observed to increase by 183 basis points YoY and 282 basis points QoQ to 55.7 percent. One-tenth of a point of percentage is referred to as a basis point.

Shares of the oil exploration and extraction business were down 2% on the BSE at Rs 163 at 9:55 a.m.

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