State-owned explorer Oil & Natural Gas Corp (ONGC) on Wednesday reported a 5 per cent drop in its net profit in the quarter ended December 31 as a sharp rise in fuel subsidy output offset one-time gains it made from Cairn India's Rajasthan oilfields.
ONGC reported a net profit of Rs 6,741.41 crore in the October-December quarter as opposed to Rs 7,083.23 crore a year ago, the company said in filing to the stock exchanges.
"An income of Rs 3,142 crore received from Cairn India towards royalty paid for the period August 2009 to September 2011 has been disclosed as an exceptional item," ONGC said.
Further, for the period October to December 2011, an amount of Rs 627 crore has been accounted as receivable.
ONGC said its board of directors has declared an interim dividend of Rs 6.25 per share (125 per cent) amounting to Rs 5,347.18 crore.