Shares of ONGC slipped in the early trade on May 26 ahead of the oil exploration and production company's March quarter earnings announcement.
Kotak Institutional Equities expects a 2 percent sequential decline in EBITDA, driven by around a 4 percent quarter-on-quarter drop in oil sales. A sequential fall of 8 percent in crude oil prices would likely be offset by a reduction in windfall taxes, it said.
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The brokerage firm has baked in overall crude oil sales volumes of 4.5 mmt, down around 4 percent QoQ and 12 percent year on year (YoY). It expects natural gas sales volumes to decline about a percent QoQ but up a percent YoY at 4.16 bcm, gross crude price realisation will fall 8 percent sequentially to $80 per bbl and net oil price realisation post royalty, windfall tax, and cess will be at $53 per bbl, up 1 percent QoQ.
Net sales of ONGC for the March quarter are seen rising 4 percent YoY to Rs 35,772.5 crore but could witness a decline of 7.3 percent sequentially while a 24 percent YoY growth is likely in the profit after tax at Rs 10,957.9 crore, according to Kotak Institutional Equities.
Profitability is also seen improving by 183 basis points YoY and 282 basis points QoQ to 55.7 percent during the quarter under review. One basis point is one-hundredth of a percentage point.
At 9.55 am, shares of the oil exploration and production company were trading at Rs 163, down 2 percent, on the BSE.
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