ONGC 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

ONGC 2017-18 Annual Report Analysis
Wed, 19 Dec

ONGC has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ONGC Income Statement Analysis

  • Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.7% in FY18 as against 16.2% in FY17.
  • Depreciation charges increased by 14.2% and finance costs increased by 39.2% YoY, respectively.
  • Other income declined by 19.9% YoY.
  • Net profit for the year declined by 10.6% YoY.
  • Net profit margins during the year declined from 8.7% in FY17 to 7.1% in FY18.

ONGC Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 3,256,662 3,622,462 11.2%
Other income Rs m 93,232 74,682 -19.9%
Total Revenues Rs m 3,349,894 3,697,143 10.4%
Gross profit Rs m 528,037 568,657 7.7%
Depreciation Rs m 202,192 230,885 14.2%
Interest Rs m 35,911 49,990 39.2%
Profit before tax Rs m 383,165 362,463 -5.4%
Tax Rs m 125,484 131,395 4.7%
Profit after tax Rs m 291,691 260,680 -10.6%
Gross profit margin % 16.2 15.7
Effective tax rate % 32.7 36.3
Net profit margin % 8.7 7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ONGC Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 1,170 billion as compared to Rs 1,240 billion in FY17, thereby witnessing an decrease of -5.7%.
  • Long-term debt stood at Rs 550 billion as compared to Rs 528 billion during FY17, a growth of 4.3%.
  • Current assets fell 8% and stood at Rs 730 billion, while fixed assets rose 7% and stood at Rs 2,258 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 4,602 billion as against Rs 4,454 billion during FY17, thereby witnessing a growth of 3%.

ONGC Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 1,943,852 2,040,189 5.0
 
Current Liabilities Rs m 1,240,293 1,169,672 -5.7
Long-term Debt Rs m 527,723 550,249 4.3
Total Liabilities Rs m 4,453,975 4,602,349 3.3
 
Current assets Rs m 792,224 730,369 -7.8
Fixed Assets Rs m 2,118,611 2,257,629 6.6
Total Assets Rs m 4,453,975 4,602,349 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ONGC Cash Flow Statement Analysis

  • ONGC's cash flow from operating activities (CFO) during FY18 stood at Rs 583 billion, an improvement of 27.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -665 billion, an improvement of 47.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 82 billion, an improvement of 537% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -967 million from the Rs 989 million net cash flows seen during FY17.

ONGC Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 457,805 582,926 27.3%
Cash Flow from Investing Activities Rs m -450,561 -665,214 -
Cash Flow from Financing Activities Rs m -18,671 81,683 -
Net Cash Flow Rs m 989 -967 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ONGC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.3, an decline from the EPS of Rs 22.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 148.5, stands at 7.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 253.8 282.3
TTM Earnings per share Rs 22.7 20.3
Diluted earnings per share Rs 22.7 20.3
Price to Cash Flow x 4.1 4.1
TTM P/E ratio x 7.5 7.5
Price / Book Value ratio x 1.1 1.2
Market Cap Rs m 1,905,736 1,905,736
Dividends per share (Unadj.) Rs 9.1 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ONGC

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.6x during FY18, from 0.6x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 8.3x during FY18, from 11.7x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 12.8% during FY18, from 15.0% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 17.1% during FY18, from 18.3% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 6.8% during FY18, from 7.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.6 0.6
Debtors’ Days Days 14 14
Interest coverage x 11.7 8.3
Debt to equity ratio x 0.3 0.3
Return on assets % 7.4 6.8
Return on equity % 15.0 12.8
Return on capital employed % 18.3 17.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how ONGC has performed over the last 5 years, please visit here.

ONGC Share Price Performance

Over the last one year, ONGC share price has moved up from Rs 185.2 to Rs 148.5, registering a loss of Rs 36.7 or around 19.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,808.8 (up 1.2%). Over the last one year it has moved down from 16,410.2 to 13,808.8, a loss of 2,601 points (down 15.9%).

Overall, the S&P BSE SENSEX is up 8.7% over the year.

(To know more, check out historical annual results for ONGC and quarterly results for ONGC)

Equitymaster requests your view! Post a comment on "ONGC 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

ONGC Announces Quarterly Results (3QFY20); Net Profit Down 49.8% (Quarterly Result Update)

Feb 19, 2020 | Updated on Feb 19, 2020

For the quarter ended December 2019, ONGC has posted a net profit of Rs 42 bn (down 49.8% YoY). Sales on the other hand came in at Rs 237 bn (down 14.4% YoY). Read on for a complete analysis of ONGC's quarterly results.

ONGC Announces Quarterly Results (1QFY20); Net Profit Down 3.9% (Quarterly Result Update)

Aug 26, 2019 | Updated on Aug 26, 2019

For the quarter ended June 2019, ONGC has posted a net profit of Rs 59 bn (down 3.9% YoY). Sales on the other hand came in at Rs 266 bn (down 2.4% YoY). Read on for a complete analysis of ONGC's quarterly results.

ONGC 2018-19 Annual Report Analysis (Annual Result Update)

Aug 7, 2019 | Updated on Aug 7, 2019

Here's an analysis of the annual report of ONGC for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of ONGC. Also includes updates on the valuation of ONGC.

More Views on News

Most Popular

Not Infosys or Wipro. India's Next Wealth Creators Could Be Drone Stocks(Profit Hunter)

Nov 25, 2020

India's drones directorate signals the next big defence tech multibaggers.

It's Time to Book Profits(Fast Profits Daily)

Nov 27, 2020

In my first video on Equitymaster, I want to introduce you my proprietary greed and fear index. It's telling us to book some profits in the market.

How the New Margins Will Impact You(Fast Profits Daily)

Nov 25, 2020

The new rules on margins will come into effect from 1st December. Are you ready?

Create Wealth for Yourself in India's Drone Revolution(Profit Hunter)

Nov 27, 2020

The Chinese drone market is 14 times that of India's. Billions may flow into Indian drone companies too. Don't miss out on this wealth creating opportunity.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK ONGC

ONGC - CAIRN INDIA COMPARISON

COMPARE ONGC WITH

MARKET STATS