ONGC Q3 Results Preview: EBITDA likely to rise 3% sequentially amid tepid sales growth

State-run crude oil and natural gas major ONGC is all set to report its financial results for the October-December period (Q3 FY24) on Saturday, February 10. Analysts predict ONGC to stage a mixed performance amid a slight reduction in realisations despite growth in volumes.

According to Zee Business research, ONGC is estimated to report a standalone net profit of Rs 10,151 crore for the fiscal third quarter, translating into a decline of 0.6 per cent compared with the previous three months. The analysts peg the crude oil and natural gas major’s revenue at Rs 36,730 crore for the December quarter, as against Rs 35,163 crore for the previous three months.

ONGC is estimated to register earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 18,950 crore for the quarter ended December 31, 2023, an increase of 3.2 per cent on a sequential basis, according to the research.

Zee Business analysts peg ONGC’s third-quarter margin at 51.6 per cent, lower by 61 basis points sequentially. They expect ONGC’s oil and gas sales to increase about one per cent on a quarter-on-quarter basis, but oil realisations to decrease three per cent.

How ONGC fared in July-September period (Q2 FY24)

In November, ONGC reported a set of second-quarter financial results that fell short of analysts’ expectations.

Its standalone net profit decreased 2.0 per cent to Rs 10,216.3 crore while revenue grew 4.0 per cent to Rs 35,163 crore for the July-September period compared with the previous three months, according to a regulatory filing.

The company’s margin came down to 52.2 per cent from 57.5 per cent.

Zee Business analysts had estimated ONGC’s second-quarter net profit at Rs 10,800 crore, revenue at Rs 36,800 crore and margin at 53.53 per cent.

ONGC shares: Past performance

As of February 9, ONGC shares have rewarded investors with a return of 83 per cent in the past year, sharply outperforming gains of 22 per cent and 60.1 per cent in the Nifty50 and Nifty Oil & Gas indices, respectively.

In the December quarter, the ONGC stock grew 6.9 per cent while the Nifty50 and the Nifty Oil & Gas gauges rose 10.7 per cent and 20.2 per cent, respectively.

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