Oil and Natural Gas Corp (ONGC) announced its July-September quarter results on November 12.
The state-owned oil and gas exploration and production company reported a consolidated profit after tax (PAT) of Rs 18,749 crore increasing 3.3x/234% from a PAT of Rs 5,675 crore in the corresponding quarter last year and higher by 174% from a PAT of Rs 6,847 crore in the preceding quarter.
The consolidated revenues at Rs 1,22,029 crore climbed up 46% from Rs 83,619 crore recorded in the corresponding quarter last year. On a sequential basis, consolidated revenues are up 13% from Rs. 1,08,136 crore was reported in the previous quarter.
“During the quarter, the company has decided to opt for lower tax regime u/s 115BAA of the Income Tax Act, 1961, with effect from FY 2020-21. Accordingly, the company has recognized provision for tax expenses and re-measured its net deferred tax liabilities”, said the company.
The net impact due to availing of the option has resulted in a decrease in deferred tax liability by Rs 8,541 crore and a decrease in current tax liability by Rs 1,304 crore. This tax write-back of Rs 7,195 crore has inflated the bottom line in this quarter.
The company benefitted from higher crude realizations and higher prices of value-added products.