Q4FY22 Preview: ONGC: PAT seen at Rs166,828 million

27 May 2022 , 12:04 PM

Result date: 28^th May, 2022
Recommendation: Reduce
Target price: Rs170
Source: IIFL Research

Oil and Natural Gas Corporation (ONGC) could see a sharp jump in Profit After Tax (PAT) in the March 2022 quarter, over the year-ago quarter. Higher oil realizations and near doubling of gas transmissions segment’s EBITDA could drive the company’s profitability even as volumes are likely to remain flat.

ONGC is a key beneficiary from the government’s move to hike prices of APM gas. While gas production is likely to remain flat, gas transmission volumes could head north amid unleashing of pent-up demand.

Analysts at IIFL Research estimate the company’s PAT at Rs166,828 million for the quarter, up 305% over the year-ago quarter.

Important management insights to watch out for:

• Growth outlook across all business segments
• Trends in overall profitability