ONGC Q3FY22 Preview: Revenue seen at Rs272,670 million, PAT at Rs84,441 million

8 Feb 2022 , 04:22 PM

Result date: 11^th February, 2022
Recommendation: Reduce
Target price: Rs150
(Source: IIFL Research)

ONGC is likely to report over 500% growth in its PAT over the year-ago quarter. Surge in commodity prices will fuel this jump in its profit during the quarter. However, sequentially, PAT could decline 54% on the back of a higher base of Q2FY22 wherein the company had a negative tax outgo.

Production of oil could decline 2-3% while that of gas could fall 4% as compared to the year ago quarter. Strong surge is likely in realizations (over 75%) on a YoY basis during the quarter, amid higher average crude oil prices. Revision in APM gas prices in domestic markets are likely to boost gas realizations during the quarter.

Overall, company is likely to register strong performance during the quarter.

RsMillion	December 2021 estimates
Sales	272,670
EBITDA	146,222
YoY change	125%
QoQ change	17%
PAT	84,441
YoY change	513%
QoQ change	(54%)

Source: Company, IIFL Research