ONGC Q2 FY25 PAT up 17.1%; Declares Interim Dividend of Rs 6

Key Takeaways from ONGC’s Financial Performance: 

• ONGC posted a 17.1% rise in Q2 FY25 net profit to Rs 11,984 crore.  
• Crude oil up 0.7%, gas production decline slows to 2.1%.  
• Interim dividend of Rs 6.00 per share, total payout Rs 7,548 crore.  
• Six new discoveries and expanded LNG marketing.

ONGC's gross revenue for Q2 stood at Rs 33,881 crore, a slight decline of 3.6% compared to Q2 FY24, but the company saw a growth in its overall net profit and production. Crude oil production during the quarter increased by 0.7%, and gas production showed signs of stabilising, with a smaller decline of 2.1% compared to Q2 FY24.

The company also declared an interim dividend of Rs 6.00 per share, amounting to Rs 7,548 crore, with a record date set for 20th November 2024.

In terms of exploration, ONGC made six new discoveries so far in FY 2024-25, including a notable find in the ultra-deepwater Cauvery offshore. Additionally, the company achieved a major milestone with its gas sale from Bokaro GCS and is expanding its LNG marketing efforts.

ONGC also announced its continued focus on increasing domestic production, with crude oil production from its standalone operations reaching 4.576 MMT in Q2, and gas production stabilising at 4.912 BCM.

In line with its long-term strategic goals, ONGC is also increasing its stake in ONGC Petro-additions Limited (OPaL) and has entered into LNG agreements with international firms to secure spot/short-term sourcing.

The company received several prestigious recognitions in recent months, including awards for its environmental and sustainability efforts, as well as industry excellence in procurement and safety. 

ONGC continues to strengthen its position as a leader in the Indian oil and gas sector with a promising outlook for the remainder of FY 2024-25. 

About Oil and Natural Gas Corporation Limited:

Oil and Natural Gas Corporation (ONGC) is India’s largest producer of crude oil and natural gas, contributing approximately 71% of the country’s domestic production. As a Maharatna company, ONGC plays a pivotal role in ensuring India's energy security. The company operates across the entire oil and gas value chain, from exploration and production to field services, with a skilled workforce of around 26,000 professionals. ONGC’s subsidiary, ONGC Videsh, explores and develops oil and gas assets globally, while its other subsidiaries, Mangalore Refinery and Petrochemicals Ltd. (MRPL) and HPCL, are key players in refining, petrochemicals, and petroleum product distribution.

Key Takeaways from the Disclosure

• The Commissioner of Customs (General) has levied a penalty of ₹50.05 lakh on TCS for exemption claims.
• The order relates to the fiscal years 2019-20 through 2022-23.
• The company anticipates no material impact on its financials or operations

The order, dated November 5, 2024, disallows the claimed exemption for certain periods between FY2019-20 and FY2022-23 and imposes a penalty of ₹50.05 lakh under Section 114A of the Customs Act, 1962.

TCS has stated its intention to appeal the order and does not expect any material impact on its financial or operational activities.

About TATA Consultancy Services Limited

Tata Consultancy Services (TCS) is the flagship company of the Tata Group. A global IT services, consulting, and business solutions organisation, TCS has been working with a long list of some of the world's biggest companies for more than five decades-helping them transform their businesses and themselves. TCS leverages service experience, business acumen, engineering knowledge, and technology to deliver deep business value.

Key Takeaways from Unicommerce Acquisition of Shipway:

• Unicommerce acquired a 42.76% stake in Shipway for Rs 68.4 crores, with a full acquisition planned within a year.
• The acquisition adds courier aggregation, shipping automation, and AI-powered marketing tools to Unicommerce's offerings.
• The deal will benefit over 6,500 businesses, including brands like Durex and Lenskart.
• The acquisition strengthens Unicommerce’s market position and expands its global reach.

In the first phase of the deal, Unicommerce will acquire a 42.76% stake in Shipway for Rs 68.4 crores. The full acquisition, including the remaining stake, will be completed within a year through a merger or stock swap.

This acquisition will significantly expand Unicommerce’s product offerings, adding solutions for courier aggregation, shipping automation, and AI-powered marketing tools. The integration of Shipway’s ‘Shipway’ and ‘ConvertWay’ platforms will provide a seamless e-commerce journey for businesses, from pre-purchase marketing to post-purchase logistics and returns management.

The combined product suite will benefit over 6,500 businesses, including top brands like Durex, Lenskart, and Lenskart, as well as thousands of Unicommerce clients. This expansion will allow Unicommerce to offer a complete, integrated solution for e-commerce businesses, further strengthening its position in the market.

This acquisition marks a key step in Unicommerce’s strategy to enhance its e-commerce capabilities and expand its global market reach.

About Unicommerce eSolutions Limited:

Unicommerce eSolutions, founded in 2012, is India's largest e-commerce enablement SaaS platform, specialising in transaction processing. It helps brands, sellers, and logistics providers manage their e-commerce operations efficiently across multiple channels. Unicommerce offers a comprehensive suite of solutions for inventory management, order fulfilment, warehouse operations, and returns management, supporting businesses of all sizes. With over 3,500 clients and a robust presence in India, the Middle East, and Southeast Asia, Unicommerce is committed to simplifying e-commerce for its clients. The company is ISO 27001 & ISO 27701 certified, ensuring high standards of data security and privacy.

Key Takeaways from the Acquisition

• POWERGRID acquired BBPTL, valued at ₹18.47 crore, including 50,000 equity shares, with adjustments pending post-audit.
• POWERGRID now holds a 100% stake in BBPTL, which was initially incorporated by REC Power Development and Consultancy Limited (RECPDCL) in May 2024.
• BBPTL will obtain necessary regulatory approvals for transmission licensing and charge adoption from the Central Electricity Regulatory Commission post-acquisition.

POWERGRID acquired BBPTL as a wholly owned subsidiary to develop the major transmission system that was planned for evacuating power from the Rajasthan Renewable Energy Zone Phase IV (Part-3: 6 GW) Bikaner complex. The acquisition aligns well with the strategic vision of POWERGRID for augmenting the infrastructure of power transmission in India.

The proposals include building of a new 765/400kV Siwani sub-station with STATCOM and multiple 765kV and 400kV double-circuit transmission lines across Rajasthan and Haryana. Additionally, bay extension works at various substations across the states would complement these long-range transmission lines.

About Power Grid Corporation of India Limited

Power Grid Corporation of India Limited is an electricity transmission company focused on planning, implementation, operation, and management of Inter-State Transmission System, besides telecom and consultancy services. It operates in three business segments: Transmission Services, Consultancy Services, and Telecom Services. In the Transmission Services segment, it carries high-voltage networks to ensure large-scale power transmission over Indian states. Consultancy Services has transmission, distribution, and telecom service expertise; planning, design, engineering, load dispatch, procurement, operation, maintenance, financing, and project management. The company uses spare optical fibers obtained from its transmission network to offer telecom services. Its technology of Smart Grid offers real-time monitoring and control over power system.