Q3FY23 Preview: Oil and Natural Gas Corporation: Sales seen at Rs 370,126 million, PAT at Rs 127,542 million

8 Feb 2023 , 03:01 PM

Result date: 14^th February, 2023

Recommendation: Reduce

Target price: Rs 130

Oil and Natural Gas Corporation (ONGC) could benefit from a 200% increase in gas price realizations, as APM gas prices were revised upward. However, analysts at IIFL Capital Services believe the benefit of runaway in Crude prices would be minimized due to windfall tax. Consequently, Oil realizations are likely to be up by only 2% over the year-ago quarter.

ONGC’s production is expected to be down 3% over the year-ago quarter. 

Analysts at IIFL Capital Services expect the Profit After Tax or PAT of ONGC to increase 46% over the year-ago quarter. They estimated that a S$5/bbl change in oil prices leads to ~7% change in EPS for ONGC.

Rs Million	December 2022 estimates
Sales	370,126
EBITDA	206,238
PAT	127,542

Source: IIFL Research