ONGC beats Q2 estimates with 34% profit increase; declares dividend

Oil and Natural Gas Corporation (ONGC) reported a strong performance for the second quarter of FY25, with net profit increasing 34% quarter-on-quarter to ₹11,984 crore, surpassing the CNBC-TV18 poll estimate of ₹8,825 crore.

This rise in profit was supported by higher operational efficiency and better margins, as the company’s EBITDA margin improved to 50.3% from 48.1% in the previous quarter.

The PSU oil giant’s revenue for Q2 stood at ₹33,881 crore, down 4% from ₹35,266 crore in the preceding quarter but in line with the CNBC-TV18 poll estimate of ₹33,215 crore.

EBITDA for the quarter came in at ₹17,025.2 crore, slightly above last quarter’s ₹16,974 crore, though marginally below the forecast of ₹17,199 crore.

Additionally, ONGC’s board approved an interim dividend of ₹6 per share.

"The Board of Directors has declared 1st Interim dividend at the rate ₹6 per equity share of face value of ₹5 each i.e. @120% for the Financial Year 2024-25. As informed vide letter dated 06.11.2024, Wednesday, the 20th November, 2024 has been fixed as “Record Date” for determining eligibility of shareholders for payment of 1st Interim Dividend," said ONGC in a stock exchange.

On November 11, ONGC's shares on BSE closed 2% lower at ₹257.25 apiece.