ONGC Q4 results preview: Profit may plunge up to 60%, margin contraction likely
NEW DELHI: Shares of ONGC climbed 1 per cent ahead of quarterly earnings later today. The oil & gas major is expected to report an up to 60 per cent drop in profit on 20-25 per cent plunge in net sales. The production guidance for domestic and overseas (OVL) businesses and the current status of KG-DWN-98/2 block will be keenly followed, said analysts.
The scrip rose 1.33 per cent to hit a high of Rs 83.50 on BSE.
HDFC Securities expects ONGC’s gas production to decline 7.5 per cent YoY, with realisation falling 2.1 per cent to Rs 9.8 per standard cubic meter. Domestic oil production is seen falling 10.8 per cent YoY to 5.2 million metric tonnes. This brokerage sees net sales for ONGC declining 23.5 per cent to Rs 20,467 crore but expects a massive 51 per cent YoY fall in adjusted profit to Rs 2,026 crore.
