Oil and Natural Gas Corporation (ONGC) on Thursday reported 14.2-per cent jump in its June quarter net profit at Rs 5,460 crore as the burden of the subsidy bill on petroleum products it has to shoulder was reduced and the output from its oilfields also went up.
The upstream oil giant had a clocked a net profit of Rs 4,782 crore in the same quarter of the previous year. "Oil production had been a matter of concern. But we have been able to arrest the decline in the previous quarter and in April-June, it rose 2.2 per cent to 5.227 million tonnes," chairman and managing director D.K. Sarraf said.
Gas output dipped three per cent to 5.482 billion cubic metres. The company is addressing that as well and hopefully there will be some positive news by the fourth quarter, he added. The major gain came from the reduction in fuel subsidy outgo, which was Rs 1,133 crore in Q1 compared with Rs 13,200 crore in the same period a year ago.