ONGC Q2FY25 Results Out, Profit Jumps 17%, Revenue Dips Slightly

State-owned oil giant Oil and Natural Gas Corporation Ltd (ONGC) has wrapped up Q2FY25 with a major 17% jump in standalone net profit, hitting Rs.11,948 crore. This is a step up from Rs.10,238 crore in the same quarter last year, primarily thanks to a dip in windfall taxes and steady production levels. However, the top line took a minor hit, with revenue from operations dropping 4% to Rs.33,881 crore, compared to Rs.35,163 crore in Q2FY24. The company reported an EBITDA of Rs. 18,236 crores with an EBITDA margin of 53.8% and also declared a Rs.6 per equity share interim dividend for FY25, with November 20, 2024, as the record date.

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Why the Big Profit Jump?

The star of the quarter was the sharp fall in windfall taxes, dropping to Rs.7,829 crore from Rs.10,791 crore last year. With international crude oil prices stabilising, this government-imposed levy eased significantly, helping ONGC’s bottom line.

But here’s the catch: ONGC earned less for the crude oil it sold. The realised price per barrel was $78.33, lower than $84.84 in the same period last year. Gas prices, though, held steady at $6.5 per MMBTU.

Production Updates

• Crude Oil: 4.576 million tonnes, up 0.7% YoY.
• Natural Gas: 4.912 billion cubic metres, down 2.1% YoY.

The company is optimistic about increasing its production in the coming months, especially from its Krishna Godavari basin block (KG-DWN-98/2), where three new wells were recently opened.

ONGC shares are trading at Rs. 260.40 today, up 1.36%, with a year-to-date gain of 26.81% and a 32.99% increase over the past year.

Conclusion: Despite revenue taking a small dip, ONGC’s cost management and operational efficiency have helped deliver strong profits. With new wells in action, the next quarters will be interesting to watch.

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