Net profit in April-June fell 33.92 percent to Rs 4,015.98 crore from Rs 6,077.70 crore in the same period a year ago. Turnover was marginally lower at Rs 19,308.93 crore in first quarter as compared to Rs 20,177.78 crore a year ago.
    
ONGC paid Rs 12,622 crore subsidy in April-June by way of discounts on crude oil and LPG it sells to fuel retailers. This compared to Rs 12,346 crore in same quarter in last fiscal.
    
The company said that the subsidy payout impacted net profit by Rs 7,131 crore. Government forces Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum to sell diesel, cooking gas (LPG) and kerosene at rates lower than their cost of production.

The difference between the cost and sale price is partly compensated by the government by way of cash subsidy while a large part of it comes from upstream firms like ONGC.

(Agencies)

Latest News  from Business News Desk