ONGC gains on better-than-expected Q3 earnings

Q3 net profit at Rs 5,563 crore against analyst expectation of Rs 5,243 crore due to lower than expected subsidy sharing.

Oil and Natural Gas Corporation (ONGC) is trading higher by 2% at Rs 314 after reporting a better-than-expected net profit at Rs 5,563 crore for the third quarter ended December 31, 2012 (Q3) due to lower than expected subsidy sharing. Analysts on an average expected profit of Rs 5,243 crore from the state-run oil exploration and production company.

The company had recorded net profit of Rs 6,742 crore during the same quarter last year, which include a one-time gain of Rs 3,142 core from past royalty dues from joint venture partner Cairn India.

“Net sales rose 16% to Rs 20,987 crore on year-on-year basis,” ONGC said in a statement.

“Overall, the subsidy sharing to be announced during the 4QFY2013 will be a key to get clarity over the final subsidy sharing figure,” Bhavesh Chauhan, Senior research analyst at Angel broking said.

The stock opened at Rs 313 and hit a high of Rs 316 on NSE. A combined 447,189 shares have changed hands on the counter on NSE and BSE.