By Malvika Gurung
Investing.com -- Shares of India’s largest crude oil and natural gas company ONGC (NS: ONGC ) tanked 4.4% in Monday’s morning trade and hit the intraday low at Rs 156.5 apiece as investors reacted to the oil major’s disappointing earnings performance during the March quarter.
ONGC was the worst performer on the benchmark index Nifty50 and led the losses on the pack in Monday’s session, defying the market’s optimistic mood today.
The Maharatna public sector undertaking reported a significant 52.7% year-on-year drop in consolidated net profit at Rs 5,701.46 crore, and EBITDA declined 14.57% YoY to Rs 20,996.73 crore.
Its operating margin shed to 14.57% by 354 basis points in Q4 FY23, compared to 18.11% in the year-ago period.
ONGC’s disappointing performance in the March-ended quarter can be attributed to a provision of Rs 12,107 crore made during the three-month period towards disputed service tax and GST on royalty and interest, which significantly impacted the state-owned major’s bottomline.
However, the company’s revenue from operations rose 5.2% YoY to Rs 1,64,948.99 crore in the Jan-Mar 2023 period, on the back of higher crude oil and natural gas prices.
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