ONGC Q1 net up 14% on lower discounts to refiners

Net sales for the quarter rose 4.4% to Rs 22,696 cr

State explorer Oil and Natural Gas Corp reported a 14 percent jump in quarterly net profit, as it significantly cut discounts on crude oil to refiners after global oil prices fell.

Net income for the company's fiscal first quarter ended June 30 rose to Rs 5,459 crore from Rs 4,782 crore a year earlier.

Upstream state companies such as ONGC and Oil India typically sell crude oil at discounted rates to partly compensate retailers for losses they incur on selling fuels such as gasoline and cooking gas (LPG) at government-set rates.

The impact of the discounts on profit after tax was Rs 628 crore during the quarter, compared with Rs 7,396 crore in the year-ago quarter.

 

Net sales for the quarter rose 4.4 percent to Rs 22,696 crore.

($1 = 65.0200 rupees)