Q1FY24 Preview Oil and Natural Gas Corporation: Revenue seen at Rs. 338,099 million, PAT at Rs. 87,289 million

10 Aug 2023 , 11:13 AM

Result date: 11^th August, 2023

Recommendation: Reduce

Target price: Rs. 150

Oil and Natural Gas Corporation (ONGC)’s performance during the June 2023 quarter is likely to be impacted by weakness in prices of Brent Crude as well as gas. Amid falling realizations, the company’s EBITDA as well as Profit After Tax (PAT) could decline as compared to the year-ago quarter. Marginally higher net oil price realization on a sequential basis could aid profitability as compared to the March 2023 quarter.

Provision for GST/service tax on royalty is likely to be an exceptional item during the June 2023 quarter, and put further pressure on the bottomline of ONGC.

Rs. Million	June 2023 estimates	QoQ change	YoY change
EBITDA	156,767	32%	(37)%
Profit After Tax	87,289	(3)%	(43)%

Source: IIFL Research