Moneycontrol Bureau
Oil and Natural Gas Corporation (ONGC) missed street expectations on Thursday with the fourth quarter net profit falling 19.5 percent year-on-year to Rs 3,935 crore. Slow growth in revenue, and higher tax burden, statutory levies & other expenses impacted the bottomline but other income supported.
Total income from operations grew by 1.6 percent to Rs 21,647.5 crore during January-March quarter compared to Rs 21,313 crore in the year-ago period.
Profit was estimated at Rs 6,000 crore on revenue of Rs 21,000 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Operating profit slipped 17.1 percent year-on-year to Rs 7,619 crore (against forecast of Rs 11,700 crore) and margin compressed 790 basis points to 35.2 percent in the quarter ended March 2015.
The state-run oil exploration company said it has not provided any discount to oil marketing companies during March quarter (against Rs 9,122 crore in the year-ago period) as the government has shared under recoveries of those companies. However for the financial year 2014-15, the company shared under recoveries of Rs 20,437 crore against Rs 31,524 crore in previous year.
ONGC said it would not be sharing under recovery of oil marketing cos in Q1FY16.
Other income jumped 26.4 percent year-on-year to Rs 1,733.6 crore in March quarter while tax expenses rose by 11 percent to Rs 2,321 crore and other expenses climbed 41 percent to Rs 4,687.4 crore.
Statutory levies increased by 14 percent to Rs 6,285 crore and exploration cost written off went up 10.8 percent to Rs 2,651.7 crore during the same period.
The scrip of ONGC closed at Rs 328.10, down Rs 3.15, or 0.95 percent on the Bombay Stock Exchange.
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