Q1 results beat, valuations factor in bright prospects for ONGC stock

The company guidance is to add over 100,000 square kilometres of exploratory area annually, and spend Rs 10,000 crore each year on exploration

India’s largest crude oil and natural gas producer, ONGC’s June quarter (first quarter of financial year 2023-24 or Q1FY24) results beat the Street’s estimates. The standalone reported operating profit was Rs 19,450 crore. It was down 25 per cent year-on-year (Y-o-Y) and up 19 per cent quarter-on-quarter (Q-o-Q), due to higher realisations in the sector. The Y-o-Y drop was against a high base as global energy prices had spiked in Q1FY23 due to the Russia-Ukraine war. Standalone revenues were at Rs 33,810 crore. Profit after tax (PAT) came in at Rs 10,020 crore, down 34 per cent Y-o-Y.