Mumbai: Shares of state-owned Oil and Natural Gas Corp (ONGC) on Thursday fell by nearly 3 percent as the company reported a 40 percent drop in its March quarter net profit.
Reacting to the disappointing numbers, the energy major's scrip opened the day on a weak note and as the trade progressed it fell by 2.3 percent to Rs 326.30 on the BSE.
At the NSE, the stock went down by 2.64 percent to Rs 326.10.
"ONGC reported lower-than expected Q4 FY13 profitability performance due to higher operating costs," Angel Broking said in a report.
ONGC had yesterday reported a 40 percent drop in its March quarter net profit as oil and gas output fell while payments on account of statutory levies rose sharply.
Net profit in the January-March quarter at Rs 3,387 crore was 40 percent lower than Rs 5,644 crore in the same period a year ago.
The company's March 2013 quarter sales were up 13.1 percent at Rs 21,460 crore.
For the fiscal, net profit was down 16.7 percent to Rs 20,926 crore on record subsidy payout.