Windfall tax cuts ONGC net profit by 30%
Windfall taxes have dragged down the net profit of state-owned ONGC by 30 per cent in the September quarter to Rs 12,825.99 crore compared with Rs 18,347.73 crore a year ago.
The profit of the exploration firm fell 15.6 per cent over the preceding June quarter when it had reported Rs 15,205.85 crore net profit.
The net profit fell despite ONGC earning $95.49 per barrel from crude oil against $69.36 a barrel a year back.
ONGC sells crude oil at international benchmark rates which soared following the Russian invasion of Ukraine.
However, the government beginning July 1 brought a windfall tax to take away gains accruing from the price surge. The tax, which is adjusted every 15 days in step with changes in global oil prices, was as high as $40 per barrel when introduced.
At an investor call, ONGC director (finance) Pomila Jaspal said the PSU paid Rs 6,400 crore as special additional excise duty in the quarter. Without the levy, profits would have been higher on an annual basis.
ONGC had in July-September 2021 posted the highest ever quarterly net profit by any Indian corporate after it opted for lower income tax in lieu of giving up exemptions.
The ONGC board has approved an interim dividend of 135 per cent, or Rs 6.75 on each equity share of Rs 5.