ONGC Q3 Results Review – Write-Offs Lead To Lower Than Expected Performance: Motilal Oswal

Oil and Pure Fuel Company Ltd. reported Ebitda stood at Rs 171.6 billion (-16% YoY), 4% under our estimate, primarily attributable to higher-than-expected exploratory properly write-offs in Q3 FY24. revenue after tax was 4% increased than our estimate, primarily aided by increased different revenue and a lower-than-expected tax fee.

The administration has guided for a 5% compound annual development fee in general manufacturing over the following three years, primarily pushed by KG 98/2 and Daman upside growth. Fuel manufacturing from the KG 98/2 asset, which is able to start in Q3 FY25, is predicted to ramp as much as 10 million metric customary cubic meter per day in FY25.

The administration stays assured that ONGC will command a 20% increased fuel value for brand new wells and that in three years, ~20% of fuel manufacturing may command such increased pricing.

We lower our standalone FY24 Ebitda/incomes per share estimates by 6%/7% and consolidated FY24 EPS estimate by 8% attributable to a weaker-than-expected efficiency in ONGC Videsh Ltd. throughout 9 months FY24.

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