JOIN USOil & Natural Gas Corp (ONGC) has reported more than doubling of its net profit in March quarter as rupee depreciation helped offset a steep rise in fuel subsidy outgo.
Net profit in January-March quarter rose to Rs 5,644 crore from Rs 2,791 crore a year ago. ONGC paid Rs 14,170 crore for subsidising diesel, domestic LPG and kerosene as against Rs 12,136 crore outgo in Q4 last fiscal.
The subsidy outgo was made good by rupee depreciation — from Rs 47.95 to a US dollar in Q4 2010-11 to Rs 50.29 to a US dollar in same period of 2011-12 fiscal. But for the subsidy outgo, ONGC profits would have been higher by over Rs 8,000 crore.
ONGC plans to invest Rs 121,737 crore in 12th Five Year Plan period. This fiscal it has a capex of Rs 30,432 crore as against Rs 28,276 crore of previous year. Its sales were up 22 per cent to Rs 18,976 crore.