State-run explorer Oil and Natural Gas Corp (ONGC) Friday reported a 10 percent fall in net profit for the second quarter ended September at Rs.5,440 crore ($881 million) after it sold crude oil at a lower price.
The company had posted a net profit of Rs.6,064 crore for the same quarter of 2013-14.
"Less profit is mainly due to unfavourable price variance," ONGC said in a statement here.
ONGC's profits were affected by crude oil's slump along with the discounts it gave to state-run refiners to compensate them for holding down retail prices of kerosene and cooking gas.
Brent crude has fallen 30 percent this year to its lowest in more than four years. The rate, in Friday's trading, slumped to $78.50 a barrel.
The government proposes to divest five percent stake in the explorer.
ONGC stock closed Friday at Rs.393.35 a share, 7.90 points, or 2.05 percent, higher than its previous close on the BSE.
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