Q2FY24 Preview: Oil and Natural Gas Corporation: Revenue seen at Rs. 329,285 million, PAT at Rs. 95,904 million

7 Nov 2023 , 11:38 AM

Result date: November 10, 2023

Recommendation: Reduce

Target price: Rs. 165

Oil and Natural Gas Corporation (ONGC) is likely to record flat production during the September 2023 quarter, as compared to the year-ago quarter. Marginally higher realizations could provide some respite. However, analysts at IIFL Capital Services expect the company to post 14% decline in its revenue over the year-ago quarter.

Lower income from treasury/dividend and normalization of D&A expenses are likely during the quarter.

Profit After Tax (PAT) could decline 25% as compared to the year-ago quarter.

Important management insights to watch out for:

• Growth outlook 
• Margin drivers and trends thereof

Rs. Million	September 2023 estimates	YoY change
Revenue	329,285	(14.1)%
EBITDA	160,225	(0.4)%
Profit After Tax	95,904	(25.2)%

Source: IIFL Research