By Malvika Gurung
Investing.com -- India’s largest crude oil and natural gas company ONGC (NS: ONGC ) reported a decline in the bottomline for the quarter ended March 31, 2023, led by lower margin and increased operational costs.
The state-owned major posted a significant 52.7% year-on-year drop in consolidated net profit at Rs 5,701.46 crore, while revenue from operations rose 5.2% YoY to Rs 1,64,948.99 crore in the March quarter.
Further, ONGC’s EBITDA in the quarter under focus declined 14.57% YoY to Rs 20,996.73 crore, while the operating margin shed to 14.57% by 354 basis points in the period as compared to 18.11% in the same quarter last year.
The disappointing performance of ONGC 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 Maharatna PSU’s bottomline.
However, ONGC registered a rise in total income during the fourth quarter of FY23, on the back of higher crude oil and natural gas prices, bolstering the company's revenue generation.
The state-owned major’s stock closed 1.36% lower at Rs 163.75 apiece in Friday’s session.
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