A Study on Determinants of Profitability of Oil and Natural Gas Corporation Limited

Oil and Natural Gas Corporation (ONGC) is the largest oil and gas company in India. The sustainable development of a firm is dependent on the profit earned during a long period consistently. The profit earned helps the firm to improve the performance. The profit of a firm could be determined by various factors. From the revenue point of view, the operating revenue and other income are the major sources of revenue whereas the expenditure items would affect the net profit inversely. This paper has been undertaken with the aim of understanding the influence of revenue and expenditure items on the net profit. In this regard, the annual reports of ONGC for the period of 10 years from 2014-15 to 2023.24 have been collected. The data collected from the annual reports have been grouped and tabulated wherever necessary. The data so collected have been analyzed using mean, standard deviation, coefficient of variation, compounded annual growth rate, ANOVA and multiple regression analysis. The results indicated that the revenue items have positively influenced the net profit while the expenditure items have negatively influenced the net profit of the firm. The major determinant of the net profit of ONGC is found to be the net revenue from operations.