ONGC’s Q1 net rises 11.9%, beats forecast

India's top oil producer, Oil and Natural Gas Corp, said on Wednesday quarterly net profit rose 11.9 per cent, beating forecast, as lower discounts to state-run refiners offset the impact of a stronger rupee. State-run ONGC said net profit rose to 46.1 billion rupees (USD 1.1 billion) in the fiscal first quarter to end-June, from 41.2 billion rupees reported in the same period a year ago. A Reuter’s poll had forecast a net profit of 38.7 billion rupees.

The company has been weighed down by discounts it is forced to give state-run refiners to keep local fuel prices low.

Since ONGC bills its customers in US dollars, a stronger rupee that has gained about 10 per cent so far this year also squeezed earnings.

Shares in ONGC, India's second-most valuable listed company at USD 48 billion, rose 2.7 per cent during the June quarter, lagging the benchmark BSE index's 12.1 per cent gain and its sector index, which rose 19 per cent.

ITC Q1 net profit up 20%, beats forecast

Country's top tobacco firm, ITC Ltd, reported on Friday a 20 percent rise in quarterly net profit on the back of higher cigarette prices and robust growth in its packaged foods and hotels businesses.

ITC, 31.7 per cent owned by British American Tobacco Plc, has entered personal care, apparel, retail and snack foods recently, but cigarettes make up two-thirds of revenues.

The Kolkata-based company said net profit rose to 7.83 billion rupees ($193 million) in the fiscal first quarter to end-June from 6.52 billion a year earlier, beating a Reuters forecast of 7.10 billion.

A value-added tax of 12.5 per cent imposed on cigarette sales from April has pushed up prices, and ITC has said it was concerned taxes and tight regulations can affect revenues.

ITC shares, valued at $15.6 billion, gained 3 per cent in the quarter, trailing a 12 per cent rise in the main index and a 5 per cent rise in the sector index.