ONGC

The actual operational performance of ONGC has not been good for Q4FY16. It was only thanks to the substantial surge in other income, exceptional income and lower tax that the PSU ended the quarter with a net profit of Rs.4416 crore, up12% (YoY) despite a 24% drop in net sales at Rs.16,140 crore. Excise duty outgo was up 47%.

The other income was huge at Rs.3392 crore v/s Rs.1734 crore in previous Q4; of this Rs.1548 crore came via write back the provision made towards acquisition cost and cost of exploratory wells. The exceptional income for the quarter is at Rs.852 crore which was a write back of the impairment charges it had provided due to falling crude oil prices. Tax out for the quarter was down 17%.

The company ended FY16 with a 23% drop in consolidated net profit at Rs.14,124 crore and 24% drop in net sales at Rs.1,29,298 crore. Under recoveries which the company paid to the oil marketing companies stood at Rs.1096 crore down from the earlier proposed Rs.1729 crore by the Govt.

ONGC’s equity base is huge at Rs.4278 crore and reserves stand at a eye-popping Rs.1,79,634 crore. EPS for the fiscal was at Rs.16.51 (FV of Rs.5/share). Borrowings stood at Rs.53,593 crore and one of the most cash-rich PSUs presently, it stood at Rs.25,784 crore, up 60%. Also one of the highest dividend paying PSUs, FY16 total dividend was at 190%.