ONGC Q1FY19 profit soars massively to Rs 6,144 cr, but misses estimates

State-owned Oil and Natural Gas Corp (ONGC) missed analysts estimate despite posting a massive 58.15% growth in June 2018 quarter (Q1FY19) result. The company recorded net profit of Rs 6,143.88 crore which was higher compared to net profit of Rs 3,884.73 crore in the corresponding period of the previous year. Meanwhile, the Q1FY19 net profit also grew sequentially by 3.87% from Rs 5,915.12 crore in the preceding quarter. This was below analysts estimate, as a Bloomberg poll of experts predicted net profit to come in at Rs 6,700 crore. 

Moreover, revenue rose by 42.67% to Rs 27,212.83 crore in June 2018, compared to Rs 19,073.54 crore a year ago same period. Also, it gained by 13.53% from Rs 23,969.83 crore in the preceding quarter. 

In the year 2017-18, ONGC had received show-cause notices at various work centers on account of service tax along with interest and penalty, on royalty on Crude oil and Natural gas levied under Oil Field (Regulation & Development) Act, 1948.

The Company had worked out service tax for the period from April 2016 to June 30 along with interest up to June 2018 of Rs 2,294 Crore (Rs 1,983 Crore as on March 2018). 

Further, GST along with interest thereon has been worked out of Rs 1,608 Crore (Rs 1,432 Crore as on March 2018) for the period from July, 2017 to June, 2018. 

However, as an abundant caution, the company has deposited Service tax, GST and interest under protest amounting to Rs 2,695 Crore. 

Earnings per share of the company stood at Rs 4.79 per share.