Oil and Natural Gas Corporation (ONGC) shares surged nearly 4 per cent in the morning trade on the bourses today after it reported a 60 per cent jump in net profit for the second quarter ended September 30, 2011.
The company announced the results on November 4, after market hours. Stock markets had remained closed on November 7, on account of Bakri-id.
Reacting to the numbers, the scrip opened on a bullish note today and then surged further by 3.83 per cent to an early high of Rs 288.30 on the BSE.
A similar movement was witnessed on the National Stock Exchange, where the stock after opening at Rs 286, jumped 4.06 per cent over its previous closing price to a high of Rs 288.05.
During the July-September quarter, the net profit stood at Rs 8,642 crore against Rs 5,389 crore in the year-ago period.
“The increase was mainly due to higher price realisation and lower fuel subsidy payout,” ONGC Chairman and Managing Director, Mr Sudhir Vasudeva, had said commenting on the results on Friday.
The scrip, however, pared the initial gains and was later trading at Rs 280.60, up 1.06 per cent on the BSE and at Rs 280.20, higher by 1.23 per cent on the NSE.
ONGC got $116.94 for every barrel of crude oil produced in the second quarter against $79.21 per barrel in the same period a year ago. After paying fuel subsidy, its net realisation was $83.70 per barrel against $62.75 a barrel in the second quarter of last fiscal.