Bangalore: India's largest oil producer, Oil and Natural Gas Corp, reported a 44 per cent rise in quarterly profit, beating forecasts, as the state-run firm's heavy discount to state refiners was offset by higher crude output.
ONGC, which produces 80 per cent of India's crude, has to sell oil from its domestic output at huge discount to state-run refiners to keep retail prices low.
ONGC, India's second-most valuable listed company with a market worth of about $50 billion, said on Monday net profit rose to Rs 6640 crore ($1.6 billion) for the fiscal first quarter ended June from Rs 4610 crore a year earlier.
Analysts polled by Reuters had forecast net profit to rise 13 per cent to Rs 5190 crore.
Ahead of the announcement, shares in ONGC ended up 3 per cent at Rs 1,012.50 in a Mumbai market that rose 0.52 per cent.
The stock had shed 17 per cent in the June quarter compared to a 10 per cent drop in the sector index and 14 per cent fall in the broader market index.