X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
ONGC: Energised performance - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jun 14, 2001

    ONGC: Energised performance

    The domestic oil & gas exploration & production major, Oil & Natural Gas Corporation Ltd. (ONGC), has recorded an impressive growth in sales. However, in FY00, the company declared revenue growth of 34.3%.

    (Rs m) 4QFY00 4QFY01 Change FY00 FY01 Change
    Sales 56,925 60,216 5.8% 200,906 236,473 17.7%
    Other Income 3,307 7,420 124.4% 9,932 14,404 45.0%
    Expenditure 30,625 29,196 -4.7% 103,007 110,792 7.6%
    Operating Profit (EBDIT) 26,300 31,019 17.9% 97,899 125,681 28.4%
    Operating Profit Margin (%) 46.2% 51.5%   48.7% 53.1%  
    Interest 1,749 951 -45.6% 6,003 3,984 -33.6%
    Depreciation 8,994 14,145 57.3% 42,523 44,533 4.7%
    Profit before Tax 18,864 23,343 23.7% 59,304 91,569 54.4%
    Tax 10,260 10,428 1.6% 23,010 39,281 70.7%
    Profit after Tax/(Loss) 8,605 12,915 50.1% 36,295 52,288 44.1%
    Net profit margin (%) 15.1% 21.4%   18.1% 22.1%  
    No. of Shares (eoy) 1,426 1,426   1,426 1,426  
    Diluted Earnings per share* 24.1 36.2   25.5 36.7  
    P/E Ratio   4.5     4.4  
    *(annualised)            

    Over the last two years sales have grown considerably, as international oil prices have skyrocketed. In FY99 the company reported a drop in sales as oil prices had declined to $10 / barrel.

    The rise in sales followed with a control on costs has ensured an impressive growth in OPM. Consequently, operating profits have also grown significantly. The OPM has increased by 530 basis points and 440 basis points during 4QFY01 and FY01 respectively.

    During FY01, the company revised the policy for accounting for wells-in-progress. Earlier, wells-in-progress for a period of more than 5 years were charged to the income statement. Under the revised policy the time period has been reduced to more than three years. This has led to a reduction in profits by Rs 4.5 bn.

    The post tax profits have received a boost from other income, which shot up over FY01. The rise was contributed by reimbursement from the Government amounting to Rs 4.4 bn. ONGC seems to be among the few companies that pay full tax rate. The effective tax rate has increased by 4.1 percentage points to 42.9% in FY01.

    At Rs 163 the company trades on a multiple of 4.4x FY01 earnings. The stock price has moved up considerably since March '01. ONGC has proposed a dividend of Rs 11.

     

     

    Equitymaster requests your view! Post a comment on "ONGC: Energised performance". Click here!

      
     

    More Views on News

    ONGC: Higher Realisations on Crude Support Performance (Quarterly Results Update - Detailed)

    Mar 17, 2017

    ONGC has announced results for the quarter ended December 2016. The company has reported 9.2 % year on year (YoY) growth in sales, while bottom-line grew 197% YoY.

    ONGC: Lower Write-offs Support Performance (Quarterly Results Update - Detailed)

    Nov 3, 2016

    ONGC has announced results for the quarter ended September 2016. The company has reported 10.3 % year on year (YoY) decline in sales, while bottom-line grew 6.3% YoY.

    GAIL: A Good Show (Quarterly Results Update - Detailed)

    Mar 27, 2017

    GAIL (India) Ltd has announced results for the quarter ended December 2016. reported 9.4% year on year (YoY) decline in sales, while bottom-line grew 45.4% YoY.

    ONGC: Impairment Loss Drags Profits (Quarterly Results Update - Detailed)

    Mar 1, 2016

    ONGC Ltd has reported 1.7% year on year (YoY) decline in the topline for the quarter ended December 2015 while the bottomline for the quarter declined 64% YoY

    ONGC: Low subsidy burden improves realizations (Quarterly Results Update - Detailed)

    Nov 26, 2015

    ONGC has reported 1.0% year on year (YoY) growth in the topline for the quarter ended September 2015 while the bottomline for the quarter declined by 11.4% YoY.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    ONGC SHARE PRICE


    Aug 17, 2017 (Close)

    TRACK ONGC

    ONGC - CHINA PETRO. COMPARISON

    Compare Company With Charts

    COMPARE ONGC WITH

    MARKET STATS