Q1FY23 Preview: Oil and Natural Gas Corporation: PAT seen at Rs130.42 billion

9 Aug 2022 , 10:30 AM

Result date: 10^th August, 2022
Recommendation: Reduce
Target price: Rs150
 
Oil and Natural Gas Corporation (ONGC) could report stellar performance in the June 2022 quarter. While volumes are likely to remain flat, any improvement in the same could trigger earnings upgrades. Growth in topline will largely be driven by surge in net realizations on the back of rising crude oil prices.

ONGC’s overall profitability will be aided by two positives — upward revision in APM prices and higher crude oil prices.

Consequently, Profit After Tax or PAT is slated to grow a whopping 201% over the year-ago quarter.

Important management insights to watch out for:

• Update on gas production from the KG Basin and key timelines thereof
• Outlook on various field developments

Rs. Billion	June 2022 estimates	YoY change
Profit After Tax	130.42	201%

Source: IIFL Research