Shares of ONGC surged nearly 2% today on strong Q2 FY25 performance with 17% growth in net profit –
State-owned Oil and Natural Gas Corporation (ONGC) reported a strong second-quarter financial performance, with net profit increasing by 17% year-on-year, primarily due to a reduction in windfall and other taxes. ONGC’s standalone net profit for Q2 FY25 (July-September) rose to ₹11,948.02 crore, up from ₹10,238.10 crore in the same period last year. The company also saw a sequential increase from ₹8,938.10 crore in the April-June quarter of this fiscal year.
The profit surge can be attributed to a decrease in windfall tax, which the government levies on domestic crude oil producers to capture extraordinary gains when international oil prices soar. With oil prices stabilising, the windfall tax was reduced during the quarter, and currently, it is set at nil. ONGC’s statutory levies for Q2 stood at ₹7,829.51 crore, down from ₹10,791.09 crore a year ago and ₹9,771.95 crore in the preceding quarter.
As of 9:22 am the shares were trading 0.90% higher at ₹259.20
Despite the lower crude oil prices – at $78.33 per barrel compared to $84.84 in the previous year – and unchanged natural gas prices at $6.5 per million British thermal unit, ONGC managed to boost its production. The company reported a modest increase in crude oil production, with standalone crude output at 4.576 million tonnes in Q2 FY25, marking a 0.7% growth year-on-year. For the April-September period, production reached 9.204 million tonnes, an increase of 0.8% over the same period last year.
ONGC’s strategic focus on increasing domestic production is seen as a positive move to counter declining trends, which contributed to the improved financial performance.
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