ONGC records 6.3% rise in Q2 net profits

Government-owned Oil and Natural Gas Corporation (ONGC) on Thursday reported a 6.3 percent increase in net profits at Rs 4,975 crore in the second quarter of current financial year as against Rs 4,681 crore in the same quarter last year.

The ONGC board also recommended a bonus issue ratio of 1:2, that will provide one bonus share for every two existing shares held. The recommendation will be subject to the approval of shareholders.

Further, ONGC had split its share of face value of Rs 10 each into two shares of face value of Rs 5 per share after which the bonus issue of 2010-11 was carried out. If approved by shareholders, each equity share of Rs 10 held by shareholders prior to 1995-96, would now amount to 36.72 equity shares of Rs 5 each.

The company had last issued bonus shares in 2010-11 in the ratio of 1:1.

Lower crude oil and natural gas price saw ONGC gross revenue fall by 10.3 percent to Rs 18,395 crore against Rs 20,512 crore in Q2 FY16.

The ONGC board also approved an interim dividend of 90 percent, Rs 4.50 on each equity share of Rs 5. The total payout on this account will be Rs 3,850 crore.

The Union government will receive Rs 2,654 crore on its 68.93 percent shareholding. In addition, dividend distribution tax of ?784 crore would also be paid to the Government.

Oil and Natural Gas Corporation Limited (ONGC)