ONGC edges higher after reporting record profit; Citi retains sell call

ONGC edges higher after reporting record profit; Citi retains sell call

Japanese research firm Nomura has a neutral call on the stock with target of Rs 185: "Production continues on declining trend. Exploration capex to increase 1.5x."





May 30, 2022 / 09:51 AM IST





ONGC



Oil and Natural Gas Corporation (ONGC) share was trading in the green in the morning session after the company declared earnings on Saturday.

The firm reported a record net profit of Rs 40,305 crore in the fiscal year ended March, becoming India's second most profitable company after Reliance Industries. It said net profit for the fiscal soared 258 per cent to Rs 40,305.74 crore.

Consolidated net profit soared to Rs 49,294.06 crore in 2021-22 as compared to Rs 21,360.25 crore in 2020-21. Both standalone and consolidated net profit are the second-highest in the country.

The profit surge came despite a 3.7 percent drop in crude oil production to 21.7 million tonnes in 2021-22 as some of the firm's western offshore fields were hit by a severe cyclone in May last year. Gas output fell five percent to 21.68 billion cubic metres.

Standalone revenue from operations soared nearly 62 percent to Rs 1.10 lakh crore and consolidated turnover came in at Rs 5.31 lakh crore.

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