ONGC surprises with 12% rise in fourth quarter profit at Rs4,416 cr
26 May 2016
State-run oil and gas explorer Oil and Natural Gas Corporation (ONGC), has reported a 12 per cent year-on-year increase in its fourth-quarter net profit at Rs4,416 cr ($657.5 million), helped by a one-off gain.
Net profit on a standalone basis was Rs4,416 crore ($657.5 million) for the three months ended 31 March 2016, compared with Rs3,935 crore a year earlier, ONGC stated in a stock exchange filing.
ONGC said it partly reversed a previously-taken charge, leading to a one-off gain of Rs852 crore in the fourth quarter.
Revenue declined 11.4 per cent to Rs16,385 crore in January-March quarter against Rs18,498 crore in December quarter.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) plunged 44.2 per cent to Rs4,487 crore and margin contracted by 1,560 basis points to 27.4 per cent compared to third quarter.
ONGC said its other income increased 4-fold to Rs3,392 crore, adding it has an exceptional gain of Rs852.2 crore in Q4 against exceptional loss of Rs3,994 crore in Q3. Tax expenses saw more than 5-fold jump at Rs1,931 crore in March quarter against Rs368.7 crore in December quarter.
Profit in FY16 fell 9.8 per cent to Rs16,003.7 crore compared to previous year due to exceptional loss (Rs3,142.2 crore) despite a 15.5 per cent increase in other income. Profit was also impacted by discount (of Rs607 crore against Rs20,437 crore YoY) given to oil marketing companies.
Revenue in same period declined 5.4 per cent to Rs78,387.5 crore.
Meanwhile, the board of directors of the company has recommended a final dividend of Rs3.25 per share, in addition to interim dividend of Rs5.25 per share. Hence, total dividend amount for FY16 stood at Rs7,273 crore against Rs8,128 crore in previous year.
