ONGC's Q1 FY25 Financial Results Show Negative Performance and Declining Profitability

Oil & Natural Gas Corporation (ONGC), a leading player in the oil exploration and refining industry, has recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

However, the financial performance of ONGC for this quarter has been negative, with a score of -9 compared to -2 in the previous quarter. This indicates a decline in the company’s overall financial health.

One of the major factors contributing to this negative performance is the Profit Before Tax (PBT) less Other Income, which has fallen by 33.6% to Rs 10,995.50 crore compared to the average PBT of the previous four quarters, which was Rs 16,560.95 crore. This trend is expected to continue in the near term.

Similarly, the Profit After Tax (PAT) for this quarter has also fallen by 21.2% to Rs 9,936.45 crore compared to the average PAT of the previous four quarters, which was Rs 12,609.52 crore. This indicates a decline in the company’s profitability.

Another concerning factor is the Operating Profit to Interest ratio, which is at its lowest in the last five quarters at 7.42 times. This indicates a deteriorating ability of the company to manage its interest payments.

Moreover, the Earnings per Share (EPS) for this quarter is also at its lowest in the last five quarters at Rs 7.90. This shows a declining profitability and lower earnings for shareholders.

In conclusion, ONGC’s financial performance for the quarter ending June 2024 has been negative, with a decline in both PBT and PAT. The company’s ability to manage interest payments has also deteriorated, and the EPS has decreased, indicating lower profitability. Investors are advised to hold their stocks and monitor the company’s performance in the coming quarters.