ONGC Q3 Results: Net Profit Declines by 7%, Announces Rs 5 Dividend
ONGC's Financial Performance in Q3 FY25
Oil and Natural Gas Corporation (ONGC) has released its financial results for the third quarter of fiscal year 2025, revealing a 6.92% decrease in consolidated net profit. The company reported a net profit of Rs 9,783.64 crore for the quarter ended December 31, 2024, compared to Rs 10,511.23 crore in the same period of the previous financial year. This represents a decline of approximately 7%.
While the net profit saw a dip, the company's revenue from operations remained relatively stable. ONGC reported a revenue of Rs 166,096.68 crore for the quarter, slightly lower than the Rs 167,356.63 crore reported in the corresponding quarter of the previous year. This indicates a marginal decrease in revenue year-on-year. It is worth noting that the previous quarter (Q2 FY25) saw a net profit of Rs 9,878.44 crore and revenue of Rs 158,329.1 crore.
Key Highlights of ONGC's Q3 Results
- Net Profit: Rs 9,783.64 crore, a 6.92% decrease year-on-year.
- Revenue from Operations: Rs 166,096.68 crore, slightly lower than last year.
- Interim Dividend: Rs 5 per equity share declared.
- Record Date: February 7th has been set as the record date for the dividend.
Dividend Announcement and Stock Performance
Despite the slight dip in profits, ONGC has announced an interim dividend of Rs 5 per equity share for the current financial year. The record date for this dividend has been fixed as February 7th, 2025. This dividend announcement is a positive move for investors, indicating the company's commitment to shareholder returns.
The market reacted positively to the news, with ONGC's stock closing 2.37% higher at Rs 262.8 on the National Stock Exchange (NSE).
Analysis of ONGC's Q3 Performance
While the drop in net profit is a point of concern, the company's revenue has remained relatively consistent. This suggests that while profitability has declined slightly, the core business operations are stable. The dividend announcement reflects the company's confidence in its financial position and its commitment to rewarding shareholders.
Investors should closely monitor ONGC's performance in the coming quarters, paying attention to both revenue growth and profit margins. The dividend announcement is a positive sign, but consistent growth in profits will be key to long-term value creation.
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