ONGC Q2 net falls 5.7%, misses forecast

ONGC Q2 net falls 5.7%, misses forecast


Mumbai: Oil and Natural Gas Corp (ONGC) reported a 5.7% drop in quarterly net profit on Thursday, missing market expectations as its subsidy burden climbed.

The state-run company posted a net profit of Rs48.08 billion ($967 million) for its fiscal second quarter ended 30 September, down from Rs50.97 billion reported a year ago and below a Reuters poll estimate of Rs64.13 billion.

ONGC, which accounts for over 78% of the country’s oil and gas production, has to sell oil from its domestic output at mandated discounts to state-run refiners to keep retail prices low.

The company said its subsidy burden in the September quarter was Rs126.6 billion rupees.