ONGC 2019-20 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?  

Markets will remain closed on May 13, 2021 on account of Id-Ul-Fitr (Ramzan Id).

ONGC 2019-20 Annual Report Analysis
Wed, 9 Dec

ONGC has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

ONGC Income Statement Analysis

  • Operating income during the year fell 6.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 30.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.3% in FY20 as against 16.5% in FY19.
  • Depreciation charges increased by 12.4% and finance costs increased by 19.9% YoY, respectively.
  • Other income grew by 10.4% YoY.
  • Net profit for the year declined by 65.9% YoY.
  • Net profit margins during the year declined from 7.4% in FY19 to 2.7% in FY20.

ONGC Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 4,534,606 4,250,014 -6.3%
Other income Rs m 77,299 85,315 10.4%
Total Revenues Rs m 4,611,904 4,335,330 -6.0%
Gross profit Rs m 748,190 521,453 -30.3%
Depreciation Rs m 237,037 266,349 12.4%
Interest Rs m 58,367 69,998 19.9%
Profit before tax Rs m 530,084 270,422 -49.0%
Tax Rs m 209,077 75,080 -64.1%
Profit after tax Rs m 339,380 115,602 -65.9%
Gross profit margin % 16.5 12.3
Effective tax rate % 39.4 27.8
Net profit margin % 7.4 2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Learn: How to Potentially Accumulate Rs 7 Crore in Wealth Over the Long-term

ONGC Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 1,177 billion as compared to Rs 1,295 billion in FY19, thereby witnessing an decrease of -9.1%.
  • Long-term debt stood at Rs 721 billion as compared to Rs 522 billion during FY19, a growth of 38.2%.
  • Current assets fell 7% and stood at Rs 807 billion, while fixed assets rose 8% and stood at Rs 2,542 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 5,039 billion as against Rs 4,933 billion during FY19, thereby witnessing a growth of 2%.

ONGC Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 2,181,408 2,069,677 -5.1
 
Current Liabilities Rs m 1,294,897 1,176,608 -9.1
Long-term Debt Rs m 521,680 720,834 38.2
Total Liabilities Rs m 4,932,590 5,038,981 2.2
 
Current assets Rs m 871,957 807,221 -7.4
Fixed Assets Rs m 2,357,156 2,542,233 7.9
Total Assets Rs m 4,932,590 5,038,981 2.2
* 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 FY20 stood at Rs 716 billion, an improvement of 16.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -535 billion, an improvement of 43.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -178 billion, an improvement of 24% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 7 billion from the Rs 10 billion net cash flows seen during FY19.

ONGC Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 614,576 716,344 16.6%
Cash Flow from Investing Activities Rs m -373,317 -534,983 -
Cash Flow from Financing Activities Rs m -233,245 -177,678 -
Net Cash Flow Rs m 10,015 7,076 -29.3%
* 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 9.2, an decline from the EPS of Rs 27.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 91.5, stands at 26.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 360.5 337.8
TTM Earnings per share Rs 27.0 9.2
Diluted earnings per share Rs 26.4 9.0
Price to Cash Flow x 2.1 3.2
TTM P/E ratio x 26.0 26.5
Price / Book Value ratio x 0.9 0.7
Market Cap Rs m 1,151,096 1,174,241
Dividends per share (Unadj.) Rs 7.0 5.0
* 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 0.7x during FY20, from 0.7x during FY19. 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 4.9x during FY20, from 10.1x during FY19. 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 5.6% during FY20, from 15.6% during FY20. 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 9.3% during FY20, from 22.4% during FY19. 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 3.7% during FY20, from 8.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.7 0.7
Debtors’ Days Days 12 8
Interest coverage x 10.1 4.9
Debt to equity ratio x 0.2 0.3
Return on assets % 8.1 3.7
Return on equity % 15.6 5.6
Return on capital employed % 22.4 9.3
* 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 down from Rs 126.4 to Rs 91.5, registering a loss of Rs 34.9 or around 27.6%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,299.0 (up 1.0%). Over the last one year it has moved down from 14,798.6 to 14,299.0, a loss of 500 points (down 3.4%).

Overall, the S&P BSE SENSEX is up 13.9% 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 2019-20 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

The Next Smallcap Winners(Profit Hunter)

Apr 30, 2021

Price is the only due diligence one might require to buy this business.

Time to Buy Smallcaps?(Fast Profits Daily)

Apr 30, 2021

In this video, I'll show you why I favour smallcaps over the Nifty.

Are the Stock Markets Deaf to Covid Agony?(Profit Hunter)

May 6, 2021

Why are markets discounting the economic impact of Covid?

My Secret to Find Breakthrough Stocks(Fast Profits Daily)

May 7, 2021

I've used this trading technique for many years with great success. I'm sharing it with you today.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK ONGC

ONGC - PETROCHINA COMPARISON

COMPARE ONGC WITH

MARKET STATS