ONGC surges post Q3 results

The company's results released Monday beat market expectations, net profit contracted 17%

State-run Oil and Natural Gas Corporation surged  2. 50 % in afternoon trade on BSE to reach a share price of Rs 316.15 on Tuesday after its third quarter net profit beat market expectations.The firm posted lowest profits in last five quarters for the December 2012 quarter, as the subsidy burden remained high. The net profit at Rs 5,563 crore was 17% lower y-o-y, but in line with the street expectations.

A report by  Edelweiss Research maintained a 'Buy' rating adding, “While upward revision in gas price is a near term trigger, long term growth would come from scale up in marginal fields and IOR projects.”

The company's sales revenue for the period under review zoomed 15.9% to Rs 21,089 crore, compared to Rs 18,199 crore during the third quarter of the financial year 2011-12.

Meanwhile, the PSU major's production has gone down drastically during the quarter. While crude oil production saw a 3.02% drop to 6.06 million metric tonne (MT) against 6.24 during the third quarter of the previous fiscal, natural gas production has also gone down 0.9% to 6.34 million metric standard cubic meters (MMSCM) compared to 6.40 MMSCM during the previous financial year.