New Delhi: State-owned Oil and Natural Gas Corp. Ltd (ONGC) said net profit rose 4% in the fiscal year ended 31 March on account of better price realization. However, the explorer’s revenue took a 4% dip in revenue to Rs61,982.52 crore.
Net profit rose marginally to Rs16,768 crore, even as the firm, which recommended a dividend payout of Rs33 per share, saw its share of the subsidy on fuel sales fall to Rs11,554 crore.
Annual profit saw only a marginal increase due to a dip in its other income such as a reduced interest rate on bank deposits, finance director D.K. Saraf said.
“There have been multiple reasons for a dip in annual profit even as the price realization has been better,” Saraf said. “We have also stopped charging interest from our subsidiary companies.”
For the three months ended 31 March, net profit rose 71% to Rs3,776 crore on a 13.22% rise in revenue to Rs16,002.34 crore, according to the audited financial results of the company posted on the website of the Bombay Stock Exchange. The results were announced after trading hours.
ONGC produced 26.46 million tonnes (mt) of crude in the year, a 2.46% decrease over 2008-09. It produced 25.6 billion cu. m of gas, 0.66% more than last fiscal.
The company expects net sales of around Rs 5,500 crore in the current fiscal on account of a recent increase in the price of subsidized gas sold by state-owned firms.
“The increase in the gas price should wipe out all the under recoveries in the gas business,” chairman and managing director R.S. Sharma said.