ONGC, Oil India Ltd to gain as Govt cuts windfall tax on crude oil
Upstream oil exploration and production companies ONGC and Oil India Ltd will benefit from the announcement as they have to pay the windfall tax on their crude oil output.
ONGC’s standalone net profit plunged by 54.6 per cent to Rs 2,878 crore during the second quarter of FY2021. The company had posted standalone profit at Rs 6,336 crore reported during the corresponding period of previous fiscal.
Its gross revenue also declined by 30.9 per cent to Rs 16,917 crore as compared to Rs 24,493 crore in the previous fiscal year.
In a statement. The company said, “the revenue and PAT for Q2 and H1 of FY21 have declined as compared to corresponding period of FY20 mainly due to lower crude oil price realisation. Lower gas prices also contributed to lower topline and bottom line.”
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The company also recognised an ‘exceptional’ Item towards impairment loss of Rs 1,238 crore in Q2 FY21 to factor into estimated future crude oil and natural gas prices.
“This impairment loss may be reversed in future as and when there is increase in crude oil and gas price. However, PAT for Q2FY21 has increased by 480 per cent i.e. from Rs 496 crore in Q1 FY21 to Rs 2,878 crore in Q2 FY21 due to recovery of crude oil price,” the statement said.
On a consolidated basis, the company reported a rise of 4.3 per cent in its Q2FY21 net profit t0 Rs 5,801 crore from Rs 5,560 crore on a YoY basis.
However, the consolidated net profit attributable to owners was down 19 per cent to Rs 4,335 crore from Rs 5,349 crore reported for the corresponding period of the previous year.
The consolidated gross revenues also declined by 17.7 per cent to Rs 83,619 crore. In FY20, it was reported at Rs101,575 crore.
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