ongc’s net profit fell by 30 percent to rs 12826 crore
Oil and Natural Gas Corporation Ltd (ONGC) in a statement issued on Tuesday said it had posted a net profit of Rs 18,347.73 crore in the year-ago quarter.
At the same time, the company’s net profit fell by 15.6 percent in the July-September quarter as compared to the April-June quarter. In the first quarter, the company had earned a profit of Rs 15,205.85 crore.
The decision to impose windfall tax on domestic petroleum products from July 1 has played an important role in the decline in ONGC’s profit. Due to this tax, the company could not get that much benefit from the increase in the price of crude oil and gas at the international level.
The effect of this was that ONGC’s income tax rate came down to 22 per cent as against 30 per cent earlier. There is also a separate surcharge and cess on this.
ONGC sells crude oil at international standard rate which is processed at oil refinery to make petrol, diesel and other petroleum products. The company’s oil and gas production declined by two per cent in the September quarter.
Along with this, the board of directors of ONGC has approved an interim dividend of 135 per cent. In this way, a total of Rs 8,492 crore will be given as interim dividend, out of which a major part will go to the government.
