ONGC q1fy23 results, reported a 251% YoY increase in profits

Posted by : Sheen Hitaishi | Sat Aug 20 2022

ONGC q1fy23 results, reported a 251% YoY increase in profits

Oil and Natural Gas Corporation (ONGC) is an oil and gas exploration and production company with its headquarters in New Delhi. The Indian government established ONGC on August 14, 1956. The Ministry of Petroleum and Natural Gas is in charge of overseeing the activities of this public sector undertaking as it generates over 84% of India’s natural gas production and about 70% of the country’s crude oil (or about 57% of total consumption). The Maharatna status of ONGC was awarded by the Indian government in November 2010.

ONGC announced its Q1FY23 results on 12th August 2022, unveiling a staggering 124% YoY increase in EBITDA and a 251% YoY increase in net profits. This quarter’s EBITDA, according to analysts, was among the finest ever. However, a number of worries lurking over the subsidiaries and the sector as a whole had an influence on performance. In fact, the ONGC share price increased by 5% over the previous two days before the release of the Q1FY23 results, reflecting the optimism of investors. So, let’s now dig deeper into the results and analyse company fundamentally and technically.

Key Highlights of ONGC Results

  • ONGC’s revenue from operations for the Q1FY23 grew by 84% YoY, up 7% QoQ
  • ONGC registered a 91% YoY growth in offshore business and onshore business increased by 72% YoY during the Q1FY23 against
  • EBITDA came in at Rs 24,731 crore for the Q1FY23, rising 125% YoY, and margin jumped by 1,065 bps YoY to 43% in Q1FY23.
  • ONGC reported a profit of Rs 15,205.8 crores for the Q1FY23, up 251% YoY, up 72% QoQ
  • After reaching a short-term high of US$133.9 per barrel on March 3rd, Brent oil prices have since dropped to US$110 per barrel due to worries about an impending recession brought on by inflation and the effects of the Russia-Ukraine war on the world

ONGC Results Q1FY23: Revenue grew 84% YoY while EBITDA grew 125% YoY

ONGC’s revenue from operations for the Q1FY23 grew by 84% YoY to Rs 42,321 crore compared to the Rs 23,022 crores in Q1FY22. While on a sequential basis revenue grew 22.7% QoQ from Rs 34,497 crores in Q4FY22 to Rs 42,321 in Q1FY23.

Further ONGC registered a 91% YoY growth in offshore business at Rs 27,990.4 crore and onshore business increased by 72% YoY to Rs 14,330.3 crore during the Q1FY23 against Q1FY22.

ongc results

The EBIT of offshore business during Q1FY23 jumped 133% to Rs 16,036 crore and that of onshore surged 682.5% to Rs 4,890.3 crore compared to the Q1FY22.

The strong operating performance was driven by increased crude realisation following a surge in oil prices and an increase in domestic gas prices. EBITDA came in at Rs 24,731 crore for the Q1FY23, rising 125% YoY, and margin jumped by 1,065 bps YoY to 58.43% in Q1FY23. While revenue classifications stood as follows: Crude Oil has the largest share in total revenue of ONGC, followed by Gas and LPG.

ongc results

ONGC Results Q1FY23: PAT Margin almost doubled in Q1FY23 with PAT increasing 251% YoY

ONGC reported a profit of Rs 15,205.8 crores for Q1FY23, up 251% YoY compared to Rs 4,335 in Q1FY22 driven by strong operating performance and top-line growth. While on sequential basis, profits grew 72% QoQ in Q1FY23 to Rs 15,206 crore from Rs 8,860 crores in Q4FY22.

ongc share price

Brent remains strong despite recent reverses

After reaching a short-term high of US$133.9 per barrel on March 3rd, Brent oil prices have since dropped to US$110 per barrel due to worries about an impending recession brought on by inflation and the effects of the Russia-Ukraine war on the world economy.

ongc share price

However, despite relatively modest supply additions for CY21–22, the already tight demand–supply environment for global gas prices is expected to prevail. The rising demand for gas in Asia, the very low gas stockpiles across Asia and Europe, and the growing fears about Russian supply interruptions to Europe might all have an impact on gas prices in the future.

Technical Analysis of ONGC share price

ONGC Stock has been down by 13% in last two months. It reached a high of t Rs 194 in March when the crude oil prices were the highest. Subsequently it has started falling from this high and has fallen 27% YTD. This can be attached to several reasons like imposition of tax by government, global supply-demand issues due to wars and probable recession & inflationary trends looming in the world economy as well as the cool off in crude oil prices.

Moreover, ONGC stock is taking a strong support at 130 and have also made an up move of 5% with the announcement of Q1FY23 results. Further, Analysts see a possible upside of more than 20% owing to its performance in Q1 and future prospects while keeping in mind key risks & concerns.

ongc share price

On the charts, the stock is still weak as the current price is below the 50 EMA. Strength can only be confirmed once the 50 EMA is able to cross the 100 and 200 EMA levels.

Motilal Oswal said, “We reiterate our Buy rating with a potential upside of 27%. The key risk to our rating will be a sharp decline in oil prices or the continuation of windfall taxes beyond Dec’22.” While ICICI Securities re-initiated coverage with a ‘BUY’ rating on ONGC Stock, with a price target of Rs185/share, a 33% upside and HDFC Securities by factoring in higher costs, set target price of INR 178/share for ONGC Stock.

Our view

While the prospects for Brent crude prices remain volatile, the recent decision by the government to impose higher cess on upstream players has created an additional hurdle. The decision to impose an additional windfall tax of US$40/bbl on upstream oil price (later reduced to US$20/bbl levels) July 2022 onwards has effectively capped net realisations for ONGC at US$70-75/bbl levels. Therefore it would be interesting to watch how these dynamics play in future.

Further, key risks to check out include sharp reversal in oil and gas price trends, with even more delays in KG basin starting up and any more regulatory setbacks. There are many uncertainties around the stock and the technical charts are weak at the moment. Till a time factors dont play out favourably, and there is an entry point indicated on the technical charts, investors can avoid this stock.

 

About the Author

Ketan Sonalkar (SEBI Rgn No INA000011255)

Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

You may also like: Aurobindo Pharma Q1FY23 results

icon

100% Safe & Secure Platform.

Univest encrypts all data and transactions to ensure a completely secure experience for our members.

Copyright

2025 Univest. All rights reserved. | Designed with ❤️ in India
About Univest
About: Univest is a cutting-edge stock market platform designed to help traders and investors maximize their returns with expert-driven advisory services and seamless trading execution. Whether you're a seasoned trader or just starting, Univest simplifies your investment journey with actionable trade recommendations, AI-powered portfolio insights, and a fully integrated brokerage experience. With Univest, you gain access to proven stock market advisory, offering expert trade ideas for stocks, futures, options, and commodities. Our one-click trade execution feature eliminates slippage, ensuring instant execution through our advisory-first brokerage. Smart portfolio management allows you to identify underperforming stocks, optimize your investments, and receive real-time alerts. Additionally, Univest provides seamless investment opportunities beyond stocks, including mutual funds, bonds, fixed deposits, and insurance (coming soon). Join over 40 lakh active investors who trust Univest to make informed and profitable trading decisions. Start investing smarter today! 🚀  
Attention Investors : To ensure a smooth trading experience and prevent unauthorized transactions, investors must update their mobile number and email ID with their stockbroker or depository participant. As per regulatory requirements, investors are required to pay a stipulated amount as an upfront margin for trading in the Cash/FO segment. We encourage all investors to regularly check their securities in the Consolidated Account Statement (CAS) issued by depository to verify their holdings.Always verify alerts and transaction details received directly from the exchange or NSDL before proceeding with any trades. Please do not make payments through unverified email links, WhatsApp, or SMS. Always trade through a registered stockbroker and verify all details before making financial decisions.
 
Disclaimer: Investments in the securities market are subject to market risks. Please read all related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. For more disclaimer /disclosure, visit https://univest.in/stock-broker or Univest App.We collect and use your contact information for legitimate business purposes, including providing updates on our products and services. We do not sell or rent your contact information to third parties. By submitting your details, you authorize us to contact you via Call/SMS, even if you are registered under DND. This authorization remains valid for 12 months.For grievances, please contact us at hello@unibrokers.in .
 
Univest Stock Broking Disclosures
Univest Stock Broking Private Limited - SEBI Reg. No. INZ000317437 (Stock Broker), NSE TM Code: 90392, BSE TM Code: 6866, MCX TM Code: 57290 and ICCL- Self Clearing Member Code: 6866, SEBI Reg. No. IN-DP-779-2024 (Participant), NSDL DP ID: IN304748.
 Risk Disclosures on Derivatives
1. 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
2. On an average, loss makers registered net trading loss close to ₹ 50,000
3. Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
4. Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Attention Investors: As per NSE circular dated July 6, 2022: https://nsearchives.nseindia.com/content/circulars/INSP52900.pdf, BSE circular dated July 6, 2022: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20220706-55, MCX circular dated July 11, 2022: https://www.mcxindia.com/docs/default-source/circulars/english/2022/july/circular-418-2022.pdf?sfvrsn=9401991_0, investors are cautioned to abstain them from dealing in any schemes of unauthorised collective investments/portfolio management, indicative/ guaranteed/fixed returns / payments etc. 
Investors are further cautioned to avoid practices like:
a. Sharing 
i) trading credentials – login id and passwords including OTPs.
ii) trading strategies,
iii) position details.
b. Trading in leveraged products /derivatives like Options without proper understanding, which could lead to losses.
c. Writing/ selling options or trading in option strategies based on tips, without basic knowledge and understanding of the product and its risks.
d. Dealing in unsolicited tips through platforms like Whatsapp, Telegram, Instagram, YouTube, Facebook, SMS, calls, etc.
e. Trading / Trading in “Options” based on recommendations from unauthorised / unregistered investment advisors and influencers.
 Kindly read the Advisory Guidelines For Investors as prescribed by the Exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client’s assets: https://nsearchives.nseindia.com/content/circulars/INSP49434.pdf
Kindly, read the advisory as prescribed by the Exchange with reference to their circular: NSE/ISC/51035 dated January 14, 2022 regarding Updation of mandatory KYC fields by March 31, 2022: https://www.nseindia.com/resources/exchange-communication-circulars# 
Attention Investors: Prevent unauthorised transactions in your Demat account by updating your mobile number with your depository participant. Receive alerts on your registered mobile number for debit and other important transactions in your Demat account directly from NSDL on the same day. Prevent unauthorised transactions in your Trading account by updating your mobile numbers/email addresses with your stock brokers. Receive information on your transactions directly from the Exchange on your mobile/email at the end of the day. Issued in the interest of investors. KYC is a one-time exercise while dealing in securities markets - once KYC is done through a SEBI-registered intermediary (Broker, DP), you need not undergo the same process again when you approach another intermediary. As a business, we don’t give stock tips and have not authorised anyone to trade on behalf of others. If you find anyone claiming to be part of Univest Stock Broking Private Limited and offering such services, please send us an email at hello@unibrokers.in
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.
Update your email ID and mobile number with your stockbroker/depository participant and receive an OTP directly from the depository on your registered email ID and/or mobile number. Check your securities/mutual funds/bonds in the Consolidated Account Statement (CAS) issued by NSDL every month.
Attention Investors: SEBI has established an Online Dispute Resolution Portal (ODR Portal) for resolving disputes in the Indian Securities Market. This circular streamlines the existing dispute resolution mechanism, offering online conciliation and arbitration, benefiting investors and listed companies https://www.sebi.gov.in/legal/circulars/jul-2023/online-resolution-of-disputes-in-the- indian-securities-market_74794.html. ODR portal for Investors - https://smartodr.in/login.
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances.
General
arrow down