ONGC net surges 24%

New Delhi, July 26 | Updated: Jul 27 2006, 05:30am hrs
Domestic exploration major, Oil and Natural Gas Corporation (ONGC), has posted a 24% increase in net profit to Rs 4,119 crore in Q1, 2006-07. Total income is up 34% to Rs 14,677 crore.

Immediately after its board meeting, ONGC informed the Bombay Stock Exchange (BSE) of its decision to issue bonus shares in the ratio 1:2 i.e. one bonus share each for two equity shares held. This is ONGCs second bonus issue. The first was in 1995.

ONGCs chairman and managing director RS Sharma told FE that the companys pre-bonus equity stands at Rs 1,426 crore. Post bonus, Rs 713 crore will get converted into equity. ONGC currently has cash reserves of Rs 52,167 crore. Post-bonus, the cash reserves will come down by Rs 713 crore to Rs 51,454 crore, he added.

The book value of ONGCs share, which is 37.6 times the face value, will get reduced to 25.2 times after the bonus issue, though it will still remain the second highest amongst oil PSUs. The current book value of HPCLs share is 25.8 times, that of IOC is 25 times while BPCL is 21.7 times.