In a remarkable turn of events during the special one-hour Muhurat Trading session on Sunday, shares of Oil & Natural Gas Corporation (ONGC) surged to an all-time high at Rs 199.70. The spike was fueled by an outstanding 142 per cent increase in Q2 net profit.
Impressive Performance in Q2 FY24
As the clock struck 06:17 PM, ONGC exhibited a 1 per cent gain, reaching 198, with trading volumes hitting approximately 30,000 shares on the BSE. Concurrently, the S&P BSE Sensex experienced a 0.5 per cent rise, reaching 65,252 points.
ONGC’s consolidated net profit witnessed a substantial surge of 142.4 per cent, reaching Rs 16,553 crore in the second quarter of FY24. This impressive growth, however, marked a 4.77 per cent decline on a sequential basis compared to the same quarter in the previous year.
Financial Overview and Market Position
Despite the dip in sequential profit, ONGC remains a financial powerhouse. The gross revenue, although down by 12.9 per cent, still stands at a noteworthy Rs 1.46 lakh crore for the quarter ended September 2023, as compared to Rs 1.68 lakh crore in Q2FY23.
Dominance in Energy Production
Contributing approximately 71 per cent to India’s domestic production, ONGC is a key player in the energy sector. The company boasts a daily production of over 1.26 million barrels of oil equivalent. Additionally, its wholly-owned subsidiary, ONGC Videsh (OVL), holds the distinction of being the largest Indian multinational in the Oil & Gas sector, managing 35 assets across 15 countries.
Market Outperformance and Future Outlook
The bullish trend for ONGC extends beyond the Q2 results. Concluding Samvat 2079 with a remarkable 47 per cent gain, ONGC’s performance in the calendar year 2023 has been nothing short of spectacular, witnessing a surge of 32 per cent. This starkly contrasts with the S&P BSE Sensex, which recorded a modest 7 per cent increase during the same period.
In conclusion, ONGC’s recent stock performance, coupled with its robust Q2 results, solidifies its position as a market leader in the energy sector. The company’s strategic dominance in both domestic and international markets positions it favorably for sustained growth in the foreseeable future. Investors and industry enthusiasts alike are keenly observing ONGC as it continues to set new benchmarks in the energy industry