ONGC Q2 net rises over 60 per cent as subsidy burden eases slightly

State-run oil explorer Oil and Natural Gas Corporation (ONGC) has reported a 60.4 per cent increase in net profit for the second quarter of the current fiscal even as oil marketing companies piled up under recoveries due to subsidized sale of petrofuels.

ONGC's net profit zoomed to Rs8,642 crore from Rs5,389 crore in the corresponding period a year ago, helped by lower subsidy burden and higher oil prices in the second quarter.

''Apart from the lower subsidy burden, the variation in crude oil prices has helped us get Rs4,392 crore more compared to second quarter of last fiscal. Moreover, there was lower production in this quarter compared to the same last fiscal as targets were lower,'' the company said.

ONGC, however, shared the subsidy burden of the government with oil marketing companies by allowing discount in the prices of crude oil, PDS kerosene and domestic LPG.

The company's after-tax profit stood at Rs3,222 crore during the second quarter ended 31 September 2011, against Rs1,721 crore during the year-ago period.

The net profit does not include royalties from Cairn India, which are expected to be accounted in the next quarter.