Shares of state-owned Oil and Natural Gas Corp (ONGC) was trading nearly 3% higher on Wednesday's session a day after the company announced its April-June quarter earnings.

Consolidated net profit of Rs 1,090 crore in the April-June quarter was 84.7% lower than Rs 7,120 crore net profit in the corresponding quarter previous year. This was on the back of drop in oil prices that almost halved and gas rates that fell to a decade low.

Sequentially, it reported a standalone profit at Rs 496 crore for the quarter ended June 2020, as against a loss of Rs 3,098.3 crore in the March quarter.

Following Q1 earnings, shares of ONGC opened at Rs 81 and later touched an intraday high of Rs 81.70, rising 2.97% on BSE against the previous close of Rs 79.35.

ONGC shares trade higher than 20 and 100-day but lower than 5, 50 and 200-day moving averages. ONGC stock has risen 1.85% in one month. Market capitalisation of the firm stood at Rs 1,00,453 crore as of today's session.

ONGC shares shed 3.29% to close at Rs 82.05 on Tuesday, ahead of the announcement.

Company's consolidated revenue dipped 42.9% YoY to Rs 62,496 crore, impacted by fall in fuel demand due to the nationwide coronavirus lockdown. Fall in realisations across all segments including E&P, refining and marketing also led to the dip, as per analysts.

EBIDTA for the quarter stood at Rs 8,839 crore down by 47.7% YoY, the company said in a statement. Meanwhile, the company said board members have approved raising up to Rs 35,000 crore via debt.

ONGC said it got $28.72 for every barrel of crude oil it sold in the quarter, down from $66.32 a barrel in the same period a year back. "The revenue and net profit for Q1 have been impacted by lower crude price realization. Lower gas prices also contributed to lower topline and bottom line," ONGC added.

The company's crude oil production was flat at 4.8 million tonnes while gas output fell 12.3% to 5.4 billion cubic meters.

"This discovery (in KG-DWN-98/2) has improved the productivity," it added later.

Expressing views on ONGC Q1 results, Jyoti Roy DVP- Equity Strategist, Angel Broking said,"During the quarter while there was no major loss of production numbers were adversely impacted due to sharp drop in realizations. However, the refining and marketing division did well for the company, largely on the back of inventory gains. We expect the E&P business to report improved profitability in Q2 though we expect refining & marketing margins to come under pressure due to lack of inventory gains."

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