FINANCIAL ANALYSIS OF ONGC

(Oil and natural gas Corporation limited)

About ONGC:
ONGC was set up under the visionary leadership of Pandit
Jawahar Lal Nehru. Pandit Nehru reposed faith in Shri Keshav
Dev Malviya who laid the foundation of ONGC in the form of
Oil and Gas division, under Geological Survey of India, in 1955.
A few months later, it was converted into an Oil and Natural Gas
Directorate. The Directorate was converted into Commission
and christened Oil & Natural Gas Commission on 14th August
1956. In 1994, Oil and Natural Gas Commission was converted
in to a Corporation, and in 1997 it was recognized as one of the
Navratnas by the Government of India. Subsequently, it has
been conferred with Maharatna status in the year 2010.

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Today, Oil and Natural Gas Corporation Ltd. (ONGC) is, the
leader in Exploration & Production (E&P) activities in India
having 72% contribution to Indias total production of crude oil
and 48% of natural gas. ONGC has established more than 7
Billion Tonnes of in-place hydrocarbon reserves in the country.
In fact, six out of seven producing basins in India have been
discovered by ONGC. ONGC produces more than 1.27 million
Barrels of Oil Equivalent (BOE) per day. It also contributes over
three million tonnes per annum of Value-Added-Products
including LPG, C2 - C3, Naphtha, MS, HSD, Aviation Fuel,
SKO etc.

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 FINANCIAL REPORTS

FINANCIAL RATIOS

Oil and
Natural Gas
Corporatio Previous Years
n
------------------- in Rs. Cr.
-------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar'10

Investment Valuation
Ratios
5.00 5.00 5.00 10.00 10.00

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Face Value
Dividend Per
-- -- -- -- --
Share
Operating Profit
67.76 64.14 68.64 56.35 209.54
Per Share (Rs)
Net Operating
Profit Per Share 203.94 189.82 172.18 137.93 477.93
(Rs)
Free Reserves
-- -- -- 128.11 459.90
Per Share (Rs)
Bonus in Equity
91.83 91.83 91.83 91.83 83.66
Capital

Profitability Ratios
Operating Profit
33.22 33.78 39.86 43.01 43.84
Margin(%)
Profit Before
Interest And Tax 22.82 25.48 30.10 32.54 24.67
Margin(%)
Gross Profit
23.72 26.34 31.08 33.55 25.53
Margin(%)
Cash Profit
28.38 28.07 32.02 35.09 35.11
Margin(%)
Adjusted Cash
28.38 28.07 31.63 24.23 35.11
Margin(%)
Net Profit
14.61 14.42 18.50 18.16 18.34
Margin(%)
Adjusted Net
14.61 14.42 18.50 18.13 18.34
Profit Margin(%)

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Return On
Capital 18.27 21.52 26.42 28.63 23.70
Employed(%)
Return On Net
15.39 15.87 20.62 19.47 19.29
Worth(%)
Adjusted Return
15.34 15.72 18.07 18.78 18.33
on Net Worth(%)
Return on Assets
Excluding 201.22 178.28 159.48 133.87 470.18
Revaluations
Return on Assets
Including 201.22 178.28 159.48 133.87 470.18
Revaluations
Return on Long
19.52 23.06 28.29 37.97 28.14
Term Funds(%)

Liquidity And Solvency

Ratios
Current Ratio 0.70 0.87 0.86 0.87 0.90
Quick Ratio 0.74 0.83 0.86 0.81 0.93
Debt Equity
0.26 0.13 0.11 0.05 0.23
Ratio
Long Term Debt
0.18 0.06 0.04 0.03 0.04
Equity Ratio

Debt Coverage Ratios

Interest Cover 63.74 76.95 92.14 79.42 59.08
Total Debt to
0.26 0.13 0.11 0.05 0.23
Owners Fund

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Financial
Charges 103.89 124.77 146.04 4.65 96.35
Coverage Ratio
Financial
Charges
83.61 98.89 119.61 3.67 76.91
Coverage Ratio
Post Tax

Management Efficiency
Ratios
Inventory
11.79 12.71 11.19 14.02 29.28
Turnover Ratio
Debtors Turnover
11.10 11.98 13.58 14.04 14.27
Ratio
Investments
11.79 12.71 11.48 26.69 29.28
Turnover Ratio
Fixed Assets
0.54 1.31 1.32 1.21 1.14
Turnover Ratio
Total Assets
0.86 0.98 1.01 1.05 0.76
Turnover Ratio
Asset Turnover
0.88 0.99 1.06 0.94 1.14
Ratio

Average Raw
-- -- -- 19.05 22.33
Material Holding
Average Finished
-- -- -- 10.98 10.00
Goods Held
Number of Days -27.92 20.00 4.67 -34.16 35.49
In Working

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Capital

Profit & Loss Account

Ratios
Material Cost
39.13 38.01 31.76 29.05 25.15
Composition
Imported
Composition of
-- -- -- -- --
Raw Materials
Consumed
Selling
Distribution Cost -- -- -- 5.83 7.67
Composition
Expenses as
Composition of -- -- -- -- --
Total Sales

Cash Flow Indicator

Ratios
Dividend Payout
35.88 38.94 34.47 38.91 42.55
Ratio Net Profit
Dividend Payout
18.44 19.91 18.80 28.27 21.66
Ratio Cash Profit
Earning
63.99 60.69 60.67 59.39 55.21
Retention Ratio
Cash Earning
81.53 79.99 79.84 70.84 77.78
Retention Ratio
AdjustedCash
0.89 0.43 0.32 0.21 0.64
Flow Times

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Interpretation
Bonus in equity share capital has increased from the year, 2010 to 2014
although net operating profits have fallen down.

Net operating profit margin has also decreased during these years.

Return on capital employed has also reduced from 23.70 to 18.27.

Current ratio is the ratio of current assets to current liability that is

ability of the assets to pay off its liabilities. Current ratio was 0.90 which
is already very poor whereas it fell down to 0.07 times in 2014, which is
not favorable. It should be in a ratio of 2:1 which is not in this case.

Quick ratio has also decreased in the trend, which is not favorable.

Inventory turnover ratio has decreased substantially, from 29.28 to 11.79

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Profit before interest and tax has also come down, which is not a good
factor.

Almost all the turnover ratios have come down, except assets turnover
ratio.

BALANCE SHEET

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 4,277.76 4,277.76 4,277.76 4,277.76 2,138.89

Equity Share Capital 4,277.76 4,277.76 4,277.76 4,277.76 2,138.89
Share Application
Money 0 0 0 0 0
Preference Share
Capital 0 0 0 0 0
132,447.2 120,175.4 108,678.9 93,226.6
Reserves 5 6 7 7 85,143.72
136,725.0 124,453.2 112,956.73 97,504.4 87,282.61

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Networth 1 2 3
Secured Loans 0 0 4,500.00 0 0
Unsecured Loans 0 0 0 0 16,405.64

Total Debt 0 0 4,500.00 0 16,405.64

136,725.0 124,453.2 97,504.4 103,688.2
Total Liabilities 1 2 117,456.73 3 5

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

244,464.2 80,501.5
Gross Block 7 96,463.86 90,019.55 6 71,553.78
Less: Revaluation
Reserves 0 0 0 0 0
148,401.7 61,862.0
Less: Accum. Dep. 6 68,980.39 68,341.41 2 55,905.28
18,639.5
Net Block 96,062.51 27,483.47 21,678.14 4 15,648.50
Capital Work in 65,299.7
Progress 25,557.79 14,415.37 73,258.12 7 56,073.25

Investments 17,204.31 9,173.05 5,216.24 5,182.80 5,772.03

Inventories 5,882.54 5,704.39 5,165.44 4,118.98 4,678.57
Sundry Debtors 8,165.67 6,863.72 6,194.82 3,994.68 3,058.64
Cash and Bank 14,481.0
Balance 10,798.88 13,218.59 20,124.57 9 282.85
22,594.7
Total Current Assets 24,847.09 25,786.70 31,484.83 5 8,020.06
101,268.0 36,300.5
Loans and Advances 35,616.73 7 40,090.29 5 63,721.90

Fixed Deposits 0 0 0 0 17,948.18

Total CA, Loans & 60,463.82 127,054.7 71,575.12 58,895.3 89,690.14

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Advances 7 0

Deferred Credit 0 0 0 0 0
28,763.6
Current Liabilities 36,062.34 30,575.81 30,715.22 9 27,244.53
21,749.2
Provisions 26,501.08 23,097.63 23,555.65 9 37,092.46
Total CL & 50,512.9
Provisions 62,563.42 53,673.44 54,270.87 8 64,336.99

Net Current Assets -2,099.60 73,381.33 17,304.25 8,382.32 25,353.15

Miscellaneous
Expenses 0 0 0 0 841.32
136,725.0 124,453.2 97,504.4 103,688.2
Total Assets 1 2 117,456.75 3 5
Contingent 20,465.0
Liabilities 51,693.35 35,810.89 27,810.71 3 39,178.54
Book Value (Rs) 159.81 145.47 132.03 113.97 408.08

INTERPRETATION

Involvement of equity has been increased substantially from

2138.89 to 4277.76.

Reserves have also increased.

Unsecured loans have been paid off, therby reducing the

liability.

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Liabilities of the company have increased whereas on the other
side, assets have decreased. Except cash and bank balance.

CASH FLOWS

Cash Flow ------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 32431.93 30544.33 36642.57 27616.37 24983.84

Net Cash From
37809.58 32191.74 35919.31 39338.37 20388.01
Operating Activities

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Net Cash (used
in)/from -30471.9 -23649.9 -26316.9 -24644.2 -13237.1
Investing Activities
Net Cash (used
in)/from Financing -9757.37 -15447.7 -3958.85 -11722.6 -8016.08
Activities
Net
(decrease)/increase In
-2419.71 -6905.98 5643.48 2971.47 -865.18
Cash and Cash
Equivalents
Opening Cash & Cash
13218.59 20124.57 14481.09 11509.62 19096.21
Equivalents
Closing Cash & Cash
10798.88 13218.59 20124.57 14481.09 18231.04
Equivalents

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