ONGC Q2 net up 6% but lags estimates

ONGC Q2 net up 6% but lags estimates

Mumbai: State-run explorer Oil & Natural Gas Corp (ONGC) reported a 5.9% rise in quarterly net profit, on higher earnings from crude sales and aided by an increase in gas prices.

ONGC said net profit rose to Rs5,389 crore ($1.2 billion) for its fiscal second quarter ended September, from Rs5,090 crore a year earlier.

A Reuters poll of 12 brokerages had on average expected net profit of Rs5,850 crore.

ONGC is required to partially subsidise fuel sales to state-run retailers, which in turn sell fuel at state-set, below-market prices.

The government, which deregulated gasoline prices in late June, had said diesel prices too would be eventually freed.