ONGC reported a weak set of second quarter earnings with net profit declining 31 percent to Rs 4,842 crore and revenue falling 9.4 percent to Rs 20,679 crore.

 Last financial year, the company clocked in production of 25.94 million tonnes. However, gas production will be lower than the target and is expected to improve only in FY17, he said. In an interview to CNBC18, AK Srinivasan, Director-Finance, spoke on new exploration draft policy. He said the policy which has just come out and we are just in the process of examination this should be better ones then what it was earlier we assume.

On the ONGC’s business and realisations in the second half of the year he said “as far as the realisations are concerned basically in the Q2 we had a realization of a 48.83 and as against the average of the Indian basket was about 50.21. Similarly, the basket for the Q1 was around 61.47. Keeping these prices but now in the second half the prices are still lower.

They are hovering in the range of between $40-45. For every dollar change there is an impact considering the exchange rate remains around $65 we have an impact of about Rs 955 crore per dollar impact on the entire volume of one year. Similarly it has an impact about Rs 530 post tax. So looking half rate it should be half of the amount which is going to have an impact on increase or decrease in a dollar by that much.