Shares of state-owned Oil and Natural Gas Corp (ONGC) today surged more than 2% in the morning trade after the company reported more than doubling of net profit in the fourth quarter of 2011-12.
The net profit in January-March quarter rose to Rs 5,644 crore from Rs 2,791 crore a year ago.
The shares of the company opened on a strong note and then surged 2.08% to an early high of Rs 261.70, on the BSE. It was later quoted at Rs 257.65, higher by 0.51% on the BSE at 1103 hours.
Similar movement was seen on the National Stock Exchange as well, where the stock opened at Rs 260.60, then jumped 2% to its day's high of Rs 261.55. It was later quoted at Rs 258.05, up 0.64% on the NSE at 1101 hours.
Gains came despite the broader market trading in the negative territory. The 30-share benchmark index Sensex was quoted at 16,352.36, down 86.22 points at 1103 hours.
ONGC paid Rs 14,170 crore for subsidising diesel, domestic LPG and kerosene as against Rs 12,136 crore outgo in Q4 last fiscal.
The subsidy outgo was made good by rupee depreciation - from Rs 47.95 to a US dollar in Q4 2010-11 to Rs 50.29 to a US dollar in same period of 2011-12 fiscal.
ONGC gets paid for both crude oil and natural gas it produces in US dollar and rupee depreciation is a bonanza for it.
