ONGC shares rise nearly 3% after robust Q1 results

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Published: August 3, 2018 11:56:00 AM

The shares of state-owned ONGC surged nearly 3 percent after country’s top explorer posted strong April-June quarter results.

ONGC reported 58 percent jump for the June quarter net profit.

The shares of state-owned ONGC surged nearly 3 percent after country’s top explorer posted strong April-June quarter results. The shares climbed to intraday high of 2.76 percent to Rs 171 on BSE, highest since June 13, in the early trade today. The shares closed at Rs 166 yesterday. ONGC reported a 58 percent rise in Q1 on Wednesday, but was below street estimates of Rs 66.43 billion, according to Thomson Reuters.  Global brokerage Morgan Stanley said that slow growth in reserve monetisation and downside risks in production growth outlook at domestic and international operations are concerns.

The brokerage has kept rating unchanged at “underweight” with a target of Rs 199. Out of 31 brokerages, twenty five rated the stock “buy” or higher, five “hold” and one “sell” or lower, Reuters reported.

ONGC reported 58 percent jump for the June quarter net profit on realising higher prices for its produce. Its net profit of Rs 6,143.88 crore, or Rs 4.79 per share, in the first quarter of 2018-19 fiscal was higher than Rs 3,884.73 crore, or Rs 3.03 a share, in the year-ago period.

The company said in a stock exchange filing that its revenue from operations rose to Rs 27,212.83 crore from Rs 19,073.54 crore in April-June period of last fiscal.

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