Rupee depreciating against the US dollar during the period ending December 30, 2013 helped Maharatna oil explorer ONGC clock a 28 per cent jump in its net profit at Rs 7,126 crore from Rs 5,563 crore in the corresponding period. This also helped the company weather the heavy subsidy payout.
Net profit in October-December rose to Rs 7,126 crore from Rs 5,563 crore a year ago, ONGC Chairman and Managing Director Sudhir Vasudeva said. ONGC paid Rs 13,764 crore in the third quarter to help the fuel retailers sell diesel and cooking fuel at rates below the market price, 10.7 per cent more than Rs 12,433 crore in the same period a year ago. The subsidy payout was near the record payout of Rs 13,796 crore in July-September quarter of this fiscal.
“Despite heavy load of subsidy, profits registered a good growth mainly due to rupee depreciation,” Vasudeva said. ONGC gets paid for the crude oil and natural gas it produces in US dollar and depreciation of rupee brings in more revenues for it. The average exchange rate in third quarter was Rs 62.03 to a US dollar as compared to Rs 54.14 a year ago.
Net profit, he said, net profit would have been higher by Rs 7,649 crore if it was not forced to pay subsidy, he said. ONGC sold crude oil at a gross rate of $108.18 per barrel as against $110.13 in third quarter of last fiscal. After paying for fuel subsidy, its net realisation fell to $45.98 per barrel from $47.94 a year ago.