The country’s leading government oil company Oil and Natural Gas Corporation (ONGC) has released the results for the March quarter. This time the company’s balance sheet remained mixed. On one hand, there has been a strong increase in the company’s income, on the other hand, there has been a huge decline of about 20 percent in the net profit. However, despite this decline in profits, the company has not disappointed its investors. The board has announced the final dividend for the shareholders, which will directly benefit the common investors.
Income increased, how did profit decrease?
If we look closely at the March quarter figures, ONGC’s revenue was excellent. The company has earned Rs 35,928 crore in this quarter. This figure is 13.9 percent more than Rs 31,547 crore of the previous quarter. That means the company has performed well on the sales front. But, when it comes to profits, the picture looks a little different.
The company’s net profit has fallen by 20.6% on quarterly basis to Rs 6,650 crore, whereas in the previous quarter this profit was Rs 8,372 crore. This decline in profits has also had a direct impact on the EBITDA margin of the company. EBITDA slipped 17.1% to Rs 12,666 crore, which was earlier Rs 15,272 crore. Due to this reason, the margin has also fallen from 48.4% to 35.3%.
Declaration of dividend for investors
Despite the decline in profits, ONGC has taken full care of the shareholders. The company’s board has recommended final dividend for the financial year 2025-26. This dividend will be Rs 1 per equity share (whose face value is Rs 5). That means investors will get a dividend of 20 percent. However, this decision is yet to get the final approval of the shareholders in the upcoming Annual General Meeting (AGM).
The company’s shares were seen moving stable in the stock market also. ONGC shares closed with slight gains on BSE on Tuesday, just before the announcement of results. It rose by Rs 2.55 (0.89%) and stopped at Rs 287.50. Also, the company also clarified that it has unsecured non-convertible debentures (NCDs) worth Rs 1,000 crore outstanding till March 31, 2026, on which security cover certificate is not applicable under SEBI rules.
New liquid port to be built in Gujarat
Keeping in view the future needs, ONGC has taken a big strategic step. The company is now going to develop a new liquid port in Dahej, Gujarat. Its capacity will be 5 MMTPA (million metric tons per year). For this, the Board has given in-principle approval to form a joint venture with Gujarat Maritime Board (GMB) with a 50:50 share.
The management believes that this big project will further strengthen its integrated energy business. The company will directly benefit in the long run by improving logistics capacity in the region. However, before taking this project off the ground, final approval from the Department of Investment (DIPAM), Government of India will be mandatory.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.
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