Shares of state-owned Oil and Natural Gas Corp (ONGC) on Thursday fell by nearly 3% as the company reported a 40% 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 trade progressed it fell by 2.3% to Rs 326.30 on the BSE.
At the NSE, the stock went down by 2.64% 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 on Wednesday reported a 40% 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% lower than Rs 5,644 crore in the same period a year ago.
The company's March 2013 quarter sales were up 13.1% at Rs 21,460 crore.
For the fiscal, net profit was down 16.7% to Rs 20,926 crore on record subsidy payout.