ONGC shares fall over 2 per cent on weaker-than-expected Q2 result

MUMBAI: Shares of Oil and Natural Gas Corp ( ONGC) today lost over 2 per cent after it reported 32 per cent drop in profit, biggest in almost four years.

The scrip of the state-owned firm opened weak and further lost 2.48 per cent to Rs 258.60 on the BSE.

At NSE, the stock was down 2.52 per cent at Rs 258.55. The scrip was the biggest loser among the bluechips in the BSE 30-stock index, Sensex, this morning.

ONGC net profit dropped 31.8 per cent to Rs 5,897 crore in the July-September quarter, compared to Rs 8,642 crore in the year-ago period.

Net sales on ONGC dropped to Rs 19,768.18 crore from Rs 22,616.32 crore in second quarter of last financial year.

Upstream firms like ONGC bear a part of the revenues that fuel retailers lose on selling diesel and cooking fuel at government controlled prices. The subsidy is paid by way of discounts on crude oil they sell to refiners.

The Sensex was trading at 18,823.60, down 22.66 points at 1217 hrs.