ONGC drops after weak Q4 results

The Q4 result was announced after market hours on Wednesday, 29 May 2013.

Meanwhile, the S&P BSE Sensex was down 31.87 points or 0.16% at 20,115.77.

On BSE, 37,000 shares were traded in the counter as against average daily volume of 3.29 lakh shares in the past one quarter.

The stock hit a high of Rs 330 and a low of Rs 326.30 so far during the day. The stock had hit a 52-week low of Rs 244 on 4 June 2012. The stock had hit a 52-week high of Rs 354.10 on 18 January 2013.

The stock had underperformed the market over the past one month till 29 May 2013, gaining 1.58% compared with the Sensex's 3.92% rise. The scrip had also underperformed the market in past one quarter, rising 6.59% as against Sensex's 6.82% gain.

The large-cap state-run oil exportation major has equity capital of Rs 4277.74 crore. Face value per share is Rs 5.

The decline in ONGC's net profit in Q4 March 2013 despite lower subsidy sharing burden was due to exceptional one-time expense. ONGC said an amount of Rs 1850 crore has been provided for in Q4 March 2013 on account of difference of employer's contribution towards superannuation benefits up to 30% as per guidelines issued by Department of Public Enterprises (DPE) for the period from 1 January 2007 to 31 March 2013.

ONGC gave a subsidy discount of Rs 12312 crore in Q4 March 2013, which was lower than Rs 14170 crore in Q4 March 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 10214 crore and profit after tax (PAT) by Rs 6900 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.

ONGC has notified two new gas discoveries -- one in the KG shallow offshore basin and other in Western offshore basin in Kutch.

Meanwhile, the company's board has approved an investment of Rs 4124.35 crore for the integrated development of Vashishta and S-1 fields for production of natural gas from KG offshore. The project is expected to be completed in by April 2016.

The Government of India (GoI) holds 69.23% stake in ONGC (as per the shareholding pattern as on 31 March 2013).

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