ONGC gains 3% post June quarter earnings; Nomura maintains ‘Reduce’
Shares of state-run ONGC (Oil and Natural Gas Corporation) jumped 3 per cent to hit an intra-day high of Rs 81.70 on the BSE on Wednesday after the company’s standalone earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at Rs 5,900 crore, beating Street estimates. This was mainly due to lower other expenses (down 51 per cent sequentially and 16 per cent YoY) owing to lesser provisioning.
It’s bottomline, however, missed estimates. Standalone gross revenue came in at Rs 13,011 crore, down 51 per cent YoY from Rs 26,555 crore posted in Q1FY20. Net profit, meanwhile, stood at Rs 496 crore, down a whopping 92 per cent YoY from Rs 5,980 crore.
