Major Mayun Ongo Owner reported on February 11 consolidation profit after tax (PAT) from RS 11,637 Crore for the third quarter ended December 2021, up 220 percent from the profit of RS 3,637 Crore reported in the same quarter last quarter.

In sequence, the profit was 38 percent lower than the rs of 18,749 crores in the previous quarter. ONGC has received suspended and current tax credits from Rs 9,320 Crore in the previous quarter of the current fiscal. Adjusting tax credit, earnings for the quarter reported has increased by 23 percent in sequence.

Consolidated income for the quarter reached Rs 1.46 lakh Crore, up 45 percent compared to Rs 1.00 Lakh Crore reported last year. Consolidated income in the previous quarter stood at Rs 1.22 Lakh Crore.

Segmental performance.

The company’s exploration and production and production business (E & P) generated RS 28,408 Crore’s revenue for the quarter at YoY growth 67.3 percent and 17 percent sequential growth.

Disconnect between offshore and land income is 65 and 35 percent.

EBIT (Profit before interest and tax) for E & P business increased 275 percent in the year and 26.5 percent of Qoq to Rs 11,379 Crore.

Purification and Marketing Income (R & M) grew by 40.4 percent in the year to Rs 1.29 lakh Crore from 0.92 lakh Crore reported during the same period last year. Compared to the previous quarter R & M revenue growth reached 22 percent.

EBIT for this business decreased marginally 1.2 percent in the year but increased in sequence of 29 percent to Rs 2,540 Crore.

External income from India’s business grew by ~ 50 percent to Rs 4,520 Crore because against Rs 3,018 Crore reported in the same period last year. In sequence, there is a 3 percent growth of Rs 4,386 Crore.

EBIT for foreign businesses grew 118 percent year-on-year and 7.5 percent in the quarter to 1,680 crore rs.

Operational performance and margins

Higher crude and gas prices produce increased cost of raw materials for companies during the quarter.

The cost of raw materials as a percentage of operating income grew by 540 bps in the year and 400 bps in the quarter to 21.8 percent.

However, the cost of employees as a percentage of operating income, fell slightly by 60 bps in the year and 30 Qoq bps to 1.1 percent.

The company saved on legal levies paid during the quarter. Legal retribution as a percentage of operating income decreased by 670 bps in the 13 percent year. They are flat in sequence.

Recognition of exploration costs during the quarter fell 120 bps in the year to 0.8 percent of operating income. There are no changes to the sequential basis.

EBITDA (income before interest, tax, depreciation and amortization) jumped by 90 percent in the year to RS 21,420 Crore compared to RS 11,279 recorded during the same period last year. In sequence, the increase in EBITDA was 20.6 percent from Rs 17,755 Crore.

As a result, the Ebita Margin for this quarter increased by 350 BPS in the year and 20 BPS in the quarter to 14.7 percent. The net margin for the quarter was established at 8 percent compared to 3.6 percent in the same period last year.

Dividend payment

The company has declared the 2nd interim dividends of Rs 1.75 per share equity of the nominal value of RS 5 each I.e. 35%, for financial year 2021-2022.

February 22 is the date of recording to determine the feasibility of shareholders for interim dividend payments. Dividends will be paid to shareholders who meet the requirements on or before March 12.

The ONC closed at Rs 168.15, down RS 0.95 from the previous close on the national stock exchange on February 11. Stocks have resulted in a return of 69 percent over the past year and traded up to 4 percent in the past month.