ONGC Q2 results: Net profit falls 19% YoY to Rs 4,335 crore; revenue declines 18%

Oil and Natural Gas Corporation (ONGC) on Friday posted around 19 per cent year-on-year fall in consolidated net profit (attributable to owners of the company) at Rs 4,335.31 crore for the quarter ended September 30. The figure stood at Rs 5,349.20 crore for the corresponding quarter last year.

Consolidated revenue from operations declined 17.70 per cent YoY to Rs 83,619.16 crore.

ONGC said it has considered possible effects of low crude oil and natural gas prices on the recoverability of its cash generating units. As a result, the company has recognised an exceptional item towards impairment loss of Rs 1,238 crore in Q2FY21 to factor into estimated future crude oil and natural gas prices.

“This impairment loss may be reversed in future as and when there is increase in crude oil and gas price,” ONGC said.

On the other hand, standalone net profit of the company dipped by 54.60 per cent YoY to Rs 2,878 crore.

In a release, ONGC said, “The revenue and PAT for Q2 and H1 of FY21 have declined as compared to corresponding period of FY20 mainly due to lower crude oil price realisation. Lower gas prices also contributed to lower topline and bottom line.”