ONGC share price declines 3% post Q3 results & ahead of Nirmala Sitharaman’s budget 2025: Do you own?

Stock Market today: Oil and Natural Gas Corporation (ONGC) share price declined more than 3% in the morning trades on Saturday post Q3 results & ahead of Nirmala Sitharaman's budget 2025

ONGC share price opened at ₹260 on the BSE on Saturday, slightly lower than the previous close of ₹262.50. The ONGC share price thereafter dipped to intraday lows of ₹253.80, which marked a decline of more than 3% 

ONGC Q3 Results

Oil and Natural Gas Corporation (ONGC), the upstream Oil and Gas producers had reported a 16.7% decline in its third-quarter net profit on Friday. ONGC's standalone net profit for the third quarter of the fiscal year, 2025 stood at ₹8,240 crore, down from ₹9,892 crore during the same time the previous year. The decline was mainly due to decline in the crude .

The company's realisations at $72.57 per barrel for crude oil it produces from seabed and from underground oil fields during the October -December 2024 quarter was lower compared to October–December 2023 realization of $ 81.13 per barrel.

While the the price of gas stood flat at $6.50 per million British thermal units., it was the decline in Crude prices that gross revenue dropped 3.1% to ₹33,771 crore.

Analysts Views

As per the first cut By Jefferies India Pvt Ltd the ONGC 3QFY25 In line with production rising sequentially.

Jefferies said that the Q3 Standalone Earnings before interest tax depreciation and Amortisation at around ₹18968 Crore increased 11% year on year and 4% sequentially and was marginally ahead of Jefferies estimates with domestic produce marginally ahead and realizations inline. Net profit was 16%/ and 17% below Jefferies and Consensus estimates on higher Depreciation and amortisation, lower dividend income and higher tax rates. Consolidated net profit at close to ₹8600 crore was 37% below driven by weaker performance by subsidiaries (HPCL and MRPL). KG basin production rose to 35,000 barrels per day.

Jefferies current target price of ₹375 is more than 45% upside for the stock

ONGC Dividend details

ONGC Board has approved 2nd interim dividend of 100%, i.e. ₹5.00 on each equity share of face value of ₹5.00 The total payout on this account will be RS 6,290 Crore., as per the company.

The Record date for distribution of dividend has been fixed for 7th February, 2025 . The first interim dividend of ₹ 6.00 per share(120%) was declared earlier in November,2024.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment.