ONGC Q3 FY22: Reports net profit of Rs. 8,764 Crore, up 596.7%

by Psu Connect
Date: 12-02-22

The net impact due to availing of the option has resulted in a decrease in deferred tax by Rs. 8,689 crore and a decrease in current tax by Rs. 2,107 crore.

ONGC Q3 FY22: Reports net profit of Rs. 8,764 Crore, up 596.7%

New Delhi: ONGC Board in its 347th meeting held on 11th February 2022, approved the results for the Third Quarter (Q3) of FY 2021-22 (FY-22).

Major Highlights:

Gross Revenue Rs. 28,474 crore in Q3, up by 67.3%Q-o-Q
Net profit Rs. 8,764 crores in Q3, up by 596.7% Q-o-Q
2nd Interim Dividend of Rs. 1.75 per share

During the nine months ended 31.12.2021, the Company had decided to opt for lower tax regime u/s 115BAA of the Income Tax Act, 1961, with effect from FY 2020-21. Accordingly, the Company has recognized provision for tax expenses and re-measured its net deferred tax liabilities. The net impact due to availing of the option has resulted in a decrease in deferred tax by Rs. 8,689 crore and a decrease in current tax by Rs. 2,107 crore.

The company Board has approved a 2nd interim dividend of 35%, i.e. Rs. 1.75 on each equity share of Rs. 5. The total payout on this account will be Rs. 2,201.55 Crore. The Record date for distribution of dividends has been fixed for 22nd February 2022 which has been intimated to the stock exchanges. This is in addition to 1st interim dividend of Rs. 5.50 per share(110%) declared earlier in Nov,2021.

While talking about the results, ONGC CMD Dr. Alka Mittal informed that ONGC has drawn up plans to increase its CAPEX spending in the next few years. “A major part of this spend will be on exploration with the acquisition of new acreages; use of latest technology in seismic data Acquisition, Processing, and Interpretation (API) and on development and infrastructure projects for fast-tracking the monetization of discovered resources. ONGC is also in the process of incorporating a wholly-owned subsidiary to focus and grow its gas business.