New Delhi: India’s largest oil producer, Oil and Natural Gas Corp. Ltd (ONGC), said on Wednesday that quarterly net profit fell 2.1%, as the government directed the state-run firm to sell crude at a heavy discount to state refiners.
ONGC has to sell oil from its domestic fields at low prices to state refiners to keep retail fuel prices down.
Net profit fell to Rs2,627 crore for the quarter to March from Rs2,682 crore a year earlier. Analysts polled by Reuters had forecast net profit to rise to Rs4,314 crore.
Shares in ONGC have fallen about a third this year, in line with a drop in the sector index and the benchmark Sensex of the Bombay Stock Exchange.