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One-offs impacted Jan-Mar quarter, but FY24 likely to be better for ONGC

Management has guided for higher output; analysts' average target price is Rs 190, an upside of 20%

Devangshu Datta
ONGC
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ONGC’s January-March quarter results for the 2022-23 financial year (Q4FY23) indicated changes in the trends of the energy cycle as well as the impact of policy change in gas-pricing. The public sector oil and gas major reported standalone Ebitda (earnings before interest, tax, depreciation and amortisation) at Rs 16,340 crore, down 12 per cent year-on-year (YoY), and down 20 per cent quarter-on-quarter (QoQ).
There was a net loss of Rs 250 crore due to exceptional items of Rs 9,240 crore for provisions related to the ongoing dispute regarding the applicability of service tax and goods and services tax on Royalty. Adjusted for this, PAT (profit after tax) would be Rs 6,180 crore, down 30 per cent YoY. Crude realisations were down while APM (administered pricing mechanism) gas prices were higher and compensated to some extent. Reported revenue was at Rs 36,290 crore, with crude oil sales at 4.7 mmt (million metric tonnes), while gas sales were at 4.1 bcm (
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First Published: May 30 2023 | 9:28 PM IST

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