ONGC 2024-25 Annual Report Analysis

Mon, 11 Aug

ONGC has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

ONGC Income Statement Analysis

• Operating income during the year fell 75.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 45.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 35.2% in FY25 as against 15.6% in FY24.
• Depreciation charges decreased by 15.3% and finance costs decreased by 61.0% YoY, respectively.
• Other income declined by 10.0% YoY.
• Net profit for the year declined by 37.6% YoY.
• Net profit margins during the year grew from 10.6% in FY24 to 27.4% in FY25.

ONGC Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	5,398,572	1,298,792	-75.9%
Other income	Rs m	333,499	300,295	-10.0%
Total Revenues	Rs m	5,732,071	1,599,086	-72.1%
Gross profit	Rs m	840,653	456,867	-45.7%
Depreciation	Rs m	287,627	243,524	-15.3%
Interest	Rs m	117,924	46,040	-61.0%
Profit before tax	Rs m	768,601	467,598	-39.2%
Tax	Rs m	197,592	111,495	-43.6%
Profit after tax	Rs m	571,008	356,103	-37.6%
Gross profit margin	%	15.6	35.2
Effective tax rate	%	25.7	23.8
Net profit margin	%	10.6	27.4

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ONGC Balance Sheet Analysis

• The company's current liabilities during FY25 down at Rs 379 billion as compared to Rs 1,512 billion in FY24, thereby witnessing an decrease of -74.9%.
• Long-term debt down at Rs 36 billion as compared to Rs 780 billion during FY24, a fall of 95.4%.
• Current assets fell 60% and stood at Rs 530 billion, while fixed assets fell 31% and stood at Rs 3,987 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 4,517 billion as against Rs 7,088 billion during FY24, thereby witnessing a fall of 36%.

ONGC Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	3,370,702	3,162,836	-6.2
Current Liabilities	Rs m	1,511,863	378,729	-74.9
Long-term Debt	Rs m	779,520	35,598	-95.4
Total Liabilities	Rs m	7,087,692	4,516,528	-36.3
Current assets	Rs m	1,332,626	529,615	-60.3
Fixed Assets	Rs m	5,754,282	3,986,912	-30.7
Total Assets	Rs m	7,087,692	4,516,528	-36.3

ONGC Cash Flow Statement Analysis

• ONGC's cash flow from operating activities (CFO) during FY25 stood at Rs 730 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -468 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -262 billion, an improvement of 43% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs -245 million from the Rs -36 billion net cash flows seen during FY24.

ONGC Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	992,627	730,102	-26.4%
Cash Flow from Investing Activities	Rs m	-572,668	-467,889	-
Cash Flow from Financing Activities	Rs m	-456,503	-262,458	-
Net Cash Flow	Rs m	-35,910	-245	-

Current Valuations for ONGC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.3, an decline from the EPS of Rs 45.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 232.6, stands at 7.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	429.1	103.2
TTM Earnings per share	Rs	45.4	28.3
Diluted earnings per share	Rs	45.4	28.3
Price to Cash Flow	x	3.9	5.9
TTM P/E ratio	x	6.5	7.6
Price / Book Value ratio	x	0.8	1.1
Market Cap	Rs m	2,737,469	3,521,220
Dividends per share (Unadj.)	Rs	12.3	12.3

Ratio Analysis for ONGC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY25, from 0.9x during FY24. 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 improved and stood at 11.2x during FY25, from 7.5x during FY24. 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 11.3% during FY25, from 16.9% during FY25. 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 16.1% during FY25, from 21.4% during FY24. 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 8.9% during FY25, from 9.7% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	0.9	1.4
Debtors’ Days	Days	13	29
Interest coverage	x	7.5	11.2
Debt to equity ratio	x	0.2	0.0
Return on assets	%	9.7	8.9
Return on equity	%	16.9	11.3
Return on capital employed	%	21.4	16.1

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 332.6 to Rs 232.6, registering a loss of Rs 100.1 or around 30.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 26,029.2 (up 0.0%). Over the last one year it has moved down from 31,784.0 to 26,029.2, a loss of 5,755 points (down 18.1%).

Overall, the S&P BSE SENSEX is up 0.8% over the year.

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