ONGC Profitable Again. Posts Rs 67.3 bn Bottomline

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Jun 25, 2021 - ONGC Profitable Again. Posts Rs 67.3 bn Bottomline

ONGC Profitable Again. Posts Rs 67.3 bn Bottomline podcast

Jun 25, 2021

State run Oil & Natural Gas Corporation (ONGC) on Thursday reported a standalone net profit of Rs 67.3 bn in the March quarter.

This compared with a loss of Rs 32.1 bn in the year-ago quarter.

The profit was mainly driven by higher realisation. Net realisation increased by 18.4% to US$58.05 a barrel in the March quarter, compared to US$49.01 a barrel the same quarter last year.

This was due to rise in crude oil prices amid hope for demand recovery.

Prices of benchmark brent crude rose as much as 35% to US$60.7 per barrel in the three months through March.

--- Advertisement ---
[Alert] Sell These 3 Stocks Immediately

These 3 stocks are ticking time bombs in your portfolio.

It is very likely that you could be owning these 3 overvalued...

fundamentally weak... ready to crash stocks... in your portfolio today.

Because many stock brokers have painted rosy pictures of these stocks. But the reality is starkly different.

If the market crashes, then these stocks could wipe out your wealth.

You should get rid of these stocks as soon as possible.

We are going to reveal details of these 3 landmines at our upcoming special event at 5 pm on September 24.

You can click here to sign-up. It's free

Key financial highlights

Sequentially, ONGC's net profit rose over fivefold.

An exceptional income of Rs 26.1 bn aided the oil & gas major's bottomline.

Revenues rose 24.5% to Rs 211.9 bn as other income rose 157% over the last quarter to Rs 31.3 bn.

Financial Snapshot

(Rs bn) Q4FY21 Q4FY20 Q3FY21 YoY (%) QoQ (%)
Revenues 211.9 214.6 170.2 -1.3% 24.5%
Total Expenses 180.1 218.9 155.4 -17.7% 15.9%
Profit before tax 89.3 -40.1 27.1 322.7% 229.5%
Tax 21.9 -7.9 14.4 377.2% 52.1%
Profit after tax 67.3 -32.1 12.6 309.7% 434.1%
Data Source: Company Filings

For the financial year ended March 2021, ONGC reported its gross revenue of Rs 681.4 bn, a de-growth of 29.2% as compared to the previous year.

The company's bottomline for the full year also declined by 16.5%, from Rs 134.6 bn to Rs 112.5 bn.

Despite lockdowns, ONGC managed to reach last year's production levels in case of crude oil from its operated blocks.

ONGC's board recommended a final dividend of 37% (Rs 1.85 per share).

Earlier, ONGC had declared an interim dividend of 35% (Rs 1.75 per share) during the year.

The total dividend for financial year 2020-21 would be Rs 3.60 per share amounting to a total payout of Rs 45.3 bn.

Transfer of ONGC's assets

Assam's Chief Minister Himanta Biswa Sarma has requested Prime Minister Narendra Modi to consider transferring all assets of the ONGC in the northeast to Oil India because of the latter's roots in the region.

Here's what he wrote in the letter.

  • It has been felt that the operations in the entire north-eastern region may be carried out by one major operator, preferably OIL as it was born in Assam and had commendable interaction with the local populace.

REVEALED: 3 "Super Smallcaps" You Didn't Know About

He also cited that the Assam and Assam-Arakan basin together had an estimated hydrocarbon deposit of 7,634 m metric tonnes of oil equivalent and hold 5,588 m metric tonnes of oil equivalent of yet-to-find resource potential, which was next only to the Krishna-Godavari Basin.

Oil India is a company rooted in the north-eastern region with more than 90% of employees from the region.

Assam and Assam-Arakan Basin in the northeast are the most prolific sedimentary basins in India. Both public sector undertakings (PSUs) Oil India and ONGC are the major operators in the region.

What's supporting ONGC's share price?

ONGC share price rose over 2% in the early trade today after the company posted profit in the quarter ended March 2021.

However, shares of the company erased gains and ended the day down by 0.7%.

ONGC shares have been on an uptrend recently. Over the past one year, they have gained 47% owing to rise in crude oil prices.

Stock of the company touched a 52-week high of Rs 128.45 earlier this month on 15 June.

At the current price of Rs 121, the company commands a marketcap of Rs 1,524.1 bn.

Rising crude oil and natural gas prices are the key factors supporting ONGC's share price.

International gas prices are also rebounding on recovering demand. The average price of the natural gas benchmark - Japan Korea Marker - surged more than 45% in May over the average price of March, according to a report.

Explorers such as ONGC, Oil India, and GAIL (India) benefit from rising gas prices.

Meanwhile, brent crude prices are trading above the US$75 per barrel mark.

Brent climbed over US$76 per barrel yesterday to the highest level since October 2018.

Note that yesterday, India flagged its concerns over the increasing crude oil prices and its impact on consuming nations with Organisation of the Petroleum Exporting Countries (OPEC).

--- Advertisement ---
INSIDER SECRET: An Astonishingly Easy Way to Pile Up Potentially 40-60% Gains in Just 1 Year

India's most well-connected trader with over 35 years of experience just confessed...

"This Lucrative Market Segment Could Leapfrog Over Nifty in The Next 12-16 Months"

... thanks to a massive and irreversible mega-trend fueling its growth!

In fact, he and his partner have already identified 2 spectacular stocks from this segment... which are ready to rake in potentially 40-60% gains in just 1 year... and make you big, fat profits!

The best part of them all...

Their Details Are Packed in This Special Report (Discover How to Claim it for Free)

India' concern was articulated by petroleum and natural gas minister Dharmendra Pradhan during his meeting with OPEC Secretary General Mohammed Sanusi Barkindo wherein reiterated his request of phasing out production cuts.

Rise in crude has led to a hike in transportation fuel prices. Diesel and petrol prices having already breached the Rs 100 mark in several parts of India.

Since we are on the topic of crude oil, many are wondering if prices will continue to go up or the rally is about to end.

India's #1 trader, Vijay Bhambwani recorded a video explaining why oil prices won't go to US$100 a barrel.

Vijay thinks the price is being artificially help up and the bull market in energy won't last.

About Oil & Natural Gas Corporation

Maharatna ONGC is the largest crude oil and natural gas company in India contributing around 75% to Indian domestic production.

Crude oil is the raw material used by downstream companies like Indian Oil Corp (IOC), BPCL, and HPCL (subsidiary of ONGC) to produce petroleum products like petrol diesel kerosene naphtha and cooking gas-LPG.

The company's subsidiaries also include ONGC Videsh, MRPL, and ONGC Mangalore Petrochemicals.

The company's oil and gas reserves are located internationally in Russia, Colombia, Vietnam, Brazil, and Venezuela.

For more details about the company, you can have a look at ONGC company factsheet and ONGC quarterly results on our website.

For a sector overview, read our energy sector report.

You can also compare ONGC with its peers.

ONGC vs Petronet LNG



To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Equitymaster requests your view! Post a comment on "ONGC Profitable Again. Posts Rs 67.3 bn Bottomline". Click here!


More Views on News

ONGC Logs Massive Jump in Net Profit as Crude Oil Prices Double (Views On News)

Aug 16, 2021

Rising crude oil prices compensate ONGC's fall in production.

ONGC Hits 52-Week High: Key Triggers that Drove the Stock This Week (Views On News)

Jun 5, 2021

ONGC stock at 52-week highs amid the recent rally in crude oil prices.

ONGC 2019-20 Annual Report Analysis (Annual Result Update)

Dec 9, 2020 | Updated on Dec 9, 2020

Here's an analysis of the annual report of ONGC for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of ONGC. Also includes updates on the valuation of ONGC.

Linde India Shares Hits New High. Up 230%+ in One Year (Views On News)

Aug 26, 2021

Linde India shares have surged sharply in the past few trading sessions. What's causing the rally?

HPCL Shares Under Pressure After Profit Declines in June Quarter (Views On News)

Aug 5, 2021

Rising crude oil prices and forex woes weigh on HPCL's quarterly numbers.

More Views on News

Most Popular

5 Small-cap Stocks with Zero Debt (Views On News)

Sep 3, 2021

In this article, you will get a list of 5 debt free small-cap companies that are worth tracking.

Sansera Engineering IPO: Key Points to Consider (Views On News)

Sep 8, 2021

This IPO is a pure OFS and the company is looking to raise Rs 12.8 bn at the upper price band of Rs 744.

5 Stocks that Turned Rs 1 Lakh into Rs 1 Crore (Views On News)

Sep 7, 2021

Patience is one of the biggest virtues you need to have if you want to become a crorepati in the stock market.

Put the Odds in Your Favour to Find Smallcap Multibaggers (Profit Hunter)

Sep 3, 2021

A handy checklist to find multibagger smallcaps.

The Top Stocks to Sell in this Bull Market (Profit Hunter)

Sep 8, 2021

When I saw the list of so-called 'value stocks' published by a leading brokerage, my worst fears came true.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2021
Get our special report Multibagger Stocks Guide (2021 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Sep 16, 2021 (Close)