8 September 2016
1QFY17 Results Update | Sector: Oil & Gas
ONGC
Buy
BSE SENSEX
28,926
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
S&P CNX
8,918
ONGC IN
8,555.5
2096 / 31.1
268 / 188
6/2/-8
1087
31.1
CMP: INR245
TP: INR282(+15%)
Beat led by lower opex/D,D&A; KG-98/2 development on fast-track
ONGC’s 1QFY17 EBITDA was above estimates at INR92.7b (est INR82b; -23%
YoY, +55% QoQ) led by lower opex at INR35b (-22% YoY, -27% QoQ) as service
costs have reduced. PAT was further boosted to INR42b (est INR32b; -22% YoY,
-4% QoQ) led by lower D,D&A of INR37b (est INR45b; -19% YoY, -10% QoQ),
partly negated by interest cost at INR2.9b (v/s almost nil earlier).
1QFY17 net realization at USD46.1/bbl:
(est of USD47/bbl ; -28% YoY, +32%
QoQ). It was exempted from subsidy sharing and we model the same for FY17.
Production, sales inline:
1QFY17 oil sales stood at 5.87mmt (inline;-2% YoY and
-2%QoQ) and gas sales at 4.15bcm (-4% YoY, flat QoQ).
ONGC reduced oil production-sales gap:
ONGC management indicated that
through its concentrated efforts has reduced the crude production and sales
gap from ~6% to ~4%.
Management guided the production target (incl. JV) for FY17 at 25.7mmt
(-0.8% YoY) for oil and 23.8bcm (+6% YoY) for gas led by Daman and Vasai East
fields. OVL production stood at 2.48mmtoe (+12% YoY) with oil at 1.6mmt and
gas at 0.87bcm – boosted by recent stake purchase in Vankor, Russia.
MoPNG has directed to pay royalty on pre-discount from February 1, 2014.
ONGC has paid INR22b to Gujarat and INR3b to Assam govt. Claim for FY09 to
FY14 (INR156b for Gujarat) isrecognized as a contingent liability by ONGC.
KG-DWN-98/2 development (USD5b capex):
ONGC is targeting oil production
in 2019/2020 and indicated that the development activity is in advanced stage
with tender documents being ready, rig contracts getting in place.
The stock trades at 13.1x FY17E EPS of INR18.8 and 11.1x FY18E EPS of INR22.1.
Implied dividend yield is at ~3-4%. Our DCF based fair value is at INR282.
Buy.
Financials & Valuations (INR b)
Y/E Mar
2016 2017E
Sales
1,293
1,306
EBITDA
452
473
Adj. PAT
176
163
EPS (INR)
20.4
18.8
EPS Gr. (%)
-0.7
-6.9
BV/Sh.(INR)
216
225
RoE (%)
9.5
8.5
RoCE (%)
8.7
7.1
P/E (x)
12.0
13.1
P/BV (x)
1.1
1.1
2018E
1,442
529
196
22.1
19.7
237
9.6
8.0
11.1
1.0
Estimate change
TP change
Rating change
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Harshad Borawake
(HarshadBorawake@MotilalOswal.com); +91 22 6129 1529
Abhinil Dahiwale
(Abhinil.Dahiwale@motilaloswal.com); +91 22 3980 4309

ONGC
Exhibit 1: ONGC (standalone): Quarterly performance snapshot
1QFY17
INR B
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 YoY (%) QoQ (%)
Gross Realization (as reported)
In USD/bbl trems
63.8
51.2
44.3
34.9
46.1 -27.7
32.2
In INR/bbl terms
4,064 3,331 2,926 2,347 3,089 -24.0
31.6
Oil (pre-subsidy)
173.7 146.5 140.5 107.5 127.5 -26.6
18.6
Less: Subsidy
-11.3
-6.0
0.0
0.0
0.0
A. Oil (net sales)
162.4 140.5 140.5 107.5 127.5 -21.5
18.6
B. Gas
C. VAP and others
Total Net sales (A + B + C)
RM & purchases
Staff Cost
Staturoy levies
Other Expenditure
Total Expenditure
EBITDA
Interest
D, D & A
Other Income*
Impairments/(writebacks)
Profit before tax
Total tax
Effective tax rate (%)
Adj. Net Profit
* adj. for one-offs
50.9
13.7
227.0
0.2
4.8
56.6
45.4
107.0
120.0
0.0
45.8
9.4
83.5
28.9
34.6
54.6
50.9
14.2
205.6
4.3
4.5
52.8
40.1
101.7
103.9
0.0
46.1
12.5
70.4
22.0
31.2
48.4
43.1
0.4
184.0
4.4
4.7
48.0
40.5
97.6
86.4
0.0
39.5
9.6
56.5
3.7
6.5
52.8
39.8
14.1
161.4
4.7
4.2
44.2
48.7
101.7
59.7
0.1
41.0
20.9
39.5
19.3
48.9
20.2
34.9 -31.5
14.4
4.9
176.7
-22.1
2.8 1,328.0
4.7
-1.7
41.1 -27.5
35.4 -22.0
83.9
-21.5
92.8
-22.7
2.9 9,381.5
37.0 -19.2
10.7
14.0
63.5
21.2
33.4
42.3
-23.9
-26.7
-22.5
-12.5
1.9
9.5
-40.0
11.1
-7.0
-27.3
-17.5
55.4
3,905.9
-9.8
-48.9
60.9
9.7
110.0
Source: Company, MOSL
Comments
USD gross realization down YoY
INR gross realization down YoY
Nil subsidy sharing
Decrease in opex on YoY basis led by lower
workover well expenses as service contract costs
reduce
Lower D,D&A led by lower dry well write-offs
Exhibit 2: ONGC: 1QFY17 Net realization at USD46/bbl
Net Realization
126
91
72
22
78
22 37 51
100
57
73 59
25
61
48
4
71
77 79 81 79
119
89
73
109
Subsidy Burden
121116
33
111
122
Gross Realization
103109108107
109
102
76
63 64 62 74
62
61
64
56
51
46
44
40 0 5 2
35
0
0
0
110110110114
2 14
24 70
19 28 33 16
67 77 63 63 62 63
55 50 69 47 34 43 58 56 58 51 48 63 65 39 48 83 45 44 47 47 48 51 40 45 46 33 47 41 36 56 59 49 44 35 46
50 56
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
8 September 2016
2

ONGC
Exhibit 3: 1QFY17 subsidy nil due to depressed crude prices
142
123
49
26
9
4
35
50 55
30
57
162
123
123
138
126
138
136
132
95
127
85
61
36 38
98
121
120 125
124
42
0
11 6
0 0 0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
Exhibit 4: Oil production (incl. JV) down 2.2% YoY, flat QoQ (mmt)
JV
ONGC
Total (incl. JV)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
Exhibit 5: Gas production (incl. JV) down 5.57 % YoY and +4.85% QoQ (bcm)
JV
ONGC
Total (incl. JV)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
8 September 2016
3

ONGC
Exhibit 6: Oil + Gas production down 3.78% YoY and +2.2% QoQ (mmtoe)
Gas (bcm)
Oil (mmt)
Total (mmtoe)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
Exhibit 7: Oil sales (incl. JV) flat YoY and -2.85%QoQ (mmt)
JV
ONGC
Total (incl. JV)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
Exhibit 8: Gas sales (incl. JV) down 6.8% YoY and +5.6% QoQ (bcm)
JV
ONGC
Total (incl. JV)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
8 September 2016
4

ONGC
Exhibit 9: Oil + Gas Sales down 4% YoY and 4.4% QoQ (mmtoe)
Gas (bcm)
Oil (mmt)
Total (mmtoe)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Source: Company, MOSL
Exhibit 10: D,D&A (incl. write-off) led by lower well write-offs (INRb)
75
50
25
0
Depletion
Depreciation
Dry Wells
Survey
Others
Average
Source: Company, MOSL
Valuation and view
While near term lower oil prices is a key concern, we remain positive on ONGC
due to (1) likely increase in net realization led by lower subsidy at higher crude
prices, (2) further benefits from kerosene reforms and (3) reasonable valuations.
Likely subsidy rationalization will increase earnings predictability and valuation.
Key things to watch are:
(1) likely subsidy rationalization and (2) production
growth.
Key risks include delays in new project execution, continued ad-hoc subsidy
sharing and royalty issue overhang.
The stock trades at 13.1x FY17E EPS of INR18.8 and 11.1x FY18E EPS of INR22.1.
Implied dividend yield is at ~3-4%. Our DCF based fair value stands at INR282.
Buy.
8 September 2016
5

ONGC
Exhibit 11: ONGC: Key Assumptions
Year End: March 31 (INRm)
Exchange Rate (INR/USD)
APM Gas Price (USD/mmbtu)
Brent crude price (USD/bbl)
Production Details (mmtoe)
Domestic Oil Prodn (mmt)
Domestic Gas Prodn (bcm)
Domestic Prodn (mmtoe)
OVL Production (mmtoe)
Group Production (mmtoe)
Subsidy Sharing (INRb)
ONGC Subsidy
Oil Price Realization (USD/bbl)
Gross
Upstream Discount
Net
Cons EPS Break-up (INR/sh)
EPS (Standalone)
EPS (OVL)
EPS (MRPL & Others)
EPS (Consolidated)
FY07
45.3
2.0
64.5
27.9
24.9
52.8
8.0
60.8
170
66.3
22.1
44.2
18.3
1.9
0.5
20.8
FY08
40.2
2.3
82.3
27.9
25.1
53.1
8.8
61.9
220
85.5
32.6
52.9
19.5
2.8
0.9
23.2
FY09
45.8
2.0
84.8
27.1
25.4
52.6
8.8
61.3
282
88.0
39.6
48.5
18.9
3.3
0.9
23.1
FY10
47.5
1.9
69.7
26.5
25.6
52.1
8.9
60.9
116
71.7
15.7
56.0
19.6
2.4
0.6
22.7
FY11
45.7
3.9
86.5
27.3
25.3
52.6
9.4
62.1
249
89.4
35.6
53.8
20.4
3.0
1.1
24.5
FY12
47.9
4.2
114.5
27.0
25.5
52.5
8.8
61.2
445
117.4
62.4
55.0
26.8
3.2
0.4
30.4
FY13
54.5
4.2
110.6
26.1
25.3
51.5
7.3
58.7
494
110.5
62.9
47.6
24.5
4.6
(0.8)
28.3
FY14
60.6
4.2
107.8
26.0
24.9
50.9
8.3
59.2
564
106.7
65.8
41.0
25.5
5.2
(0.0)
30.6
FY15
61.1
4.8
86.0
25.9
23.7
49.6
8.5
58.2
363
86.0
40.9
45.1
20.7
2.3
(2.2)
20.8
FY16
65.5
4.7
47.6
25.8
22.5
48.4
8.8
57.1
17
48.6
1.8
46.8
20.0
(2.4)
2.8
20.4
FY17E
68.0
3.6
45.0
26.6
23.6
50.2
9.6
59.7
16
46.0
1.6
44.4
15.9
(1.0)
2.4
17.3
FY18E
70.0
3.9
50.0
27.4
24.8
52.2
9.8
62.0
34
51.0
3.1
47.9
22.3
(0.7)
2.2
23.8
Source: Company, MOSL
8 September 2016
6

ONGC
ONGC: Story in charts
Exhibit 12: Despite ad-hoc subsidy, last 10 yr EPS CAGR at
~10% (INR)
30.4
20.8
23.2 23.1 22.7
24.5
28.3
30.6
21.1 20.4
1.0
1.1
Exhibit 13: Impressive RRR of >1 in last eight years
Reserves/ Production (Years)
1.7
1.4
1.3
1.4
1.8
RRR (x) - Actual
1.8
1.8
1.7
18.0
15
15
15
16
16
16
16
16
17
15
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Source: Company, MOSL
Source: Company, MOSL
Exhibit 14: Expect domestic production uptick in
coming years (mmt)
Domestic Oil Prodn (mmt)
Domestic Prodn (mmtoe)
Domestic Gas Prodn (bcm)
Exhibit 15: Recent acquisitions to lead OVL to next
growth phase (mmt)
8.8 8.8 8.9
9.4
8.8
7.2
8.2
9.1 9.5
Vietnam
Sakhalin-1
GNOP, Sudan
5A Sudan
Colombia
Venezuela
Imperial
Brazil BC-10
Myanmar
Carabobo
FY16E
Azerbaijan
52.6 52.1 52.6 52.5 51.5 50.8 49.5
48.4 49.2 50.6
25.4 25.6 25.3 25.5 25.3 24.8 23.5 22.5 23.4 24.4
27.1 26.5 27.3 27.0 26.1 26.0 25.9 25.8 25.8 26.3
5.1
3.9
8.0
6.3
FY04
Source: Company, MOSL
FY06
FY08
FY10
FY12
FY14
Source: Company, MOSL
Exhibit 16: Under-recoveries decline significantly, LPG now
under DBTL and to be fully shared by the government
Under
recoveries in
INR b
Diesel
Kerosene
1,610
1,385
284
780
205
200
348
278
819
399
296
915
LPG
1,399
465
306
628
Petrol
Total
Exhibit 17: Leading to increase in net realization (USD/bbl)
Net
Upstream Discount
117
88
89
72
16
56
36
54
62
111
63
107
86
66
41
45
49
2
47
46
2
44
Gross
1,033
52
773
176
156 73
282
461
191
52
143
523
174
353
93
723
366
248
109
115
115
90
90
40
48
55
48
41
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
Source: Company, MOSL
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
Source: Company, MOSL
8 September 2016
7

ONGC
Financials and Valuations
Consolidated Income Statement
Y/E March
Net Sales
Growth (%)
Government Levies
Other Operating Costs
Total Operating Costs
EBITDA
% of Net Sales
Interest
D,D&A
Other Income
Prov, wrtie-(offs)/back prior period
PBT
Tax
Rate (%)
PAT
Adj PAT
Growth (%)
Minority int., assoc profits
Net Profit post MI
(INR Billion)
2010
1,018
-2.7
166
402
568
449
44.2
5
187
53
6
304
107
35
197
197
-2.1
3
194
2011
1,176
15.6
192
483
676
500
42.5
4
206
69
16
343
115
33
228
213
8.1
4
210
2012
1,464
24.4
231
655
886
578
39.5
4
234
58
-31
428
144
34
284
263
23.3
3
260
2013
1,624
11.0
257
818
1,075
549
33.8
5
231
55
0
367
128
35
240
240
-8.8
-2
242
2831%
2013
43
1,483
1,525
205
142
207
19
2,099
1,235
827
397
805
705
136
21
83
303
128
154
142
51
777
373
56
430
347
2,099
2014
1,745
7.4
262
893
1,155
590
33.8
6
251
69
2
405
128
32
277
264
9.9
1
262
2015
1,609
-7.8
255
807
1,062
547
34.0
29
290
60
14
274
97
35
177
177
-33.0
-7
184
2016
1,293
-19.6
216
625
841
452
34.9
42
222
85
46
227
84
31
143
176
-0.7
1
174
2017E
1,306
1.0
237
596
833
473
36.2
37
242
48
0
242
78
32
163
163
-6.9
3
161
2018E
1,442
10.4
261
651
913
529
36.7
20
265
47
0
291
95
33
196
196
19.7
6
190
Balance Sheet
(INR Billion)
Y/E March
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Liability for Abandonment
Minority Interest
Capital Employed
Gross Fixed Assets
Less: Depreciation
Capital WIP
Net Fixed Assets
Producing Properties
Pre-producing Properties
Investments (incl. mkt. sec.)
Goodwill
Cash & Bank Balances
Inventories
Sundry debtors
Loans & Advances
Other Current Assets
Total Curr. Assets
Current Liabilities
Provisions
Total current liabilities
Net Curr. Assets
Total assets
E: MOSL Estimates
2010
21
984
1,006
63
103
175
16
1,362
902
658
176
420
512
80
52
95
224
82
71
121
8
506
227
75
302
204
1,362
2011
43
1,103
1,145
63
112
199
20
1,539
999
731
274
542
572
102
34
90
287
86
98
110
9
590
340
51
391
198
1,539
2012
43
1,322
1,364
152
122
204
22
1,865
1,114
806
380
688
608
117
29
78
374
132
117
130
44
797
390
61
452
345
1,865
2014
43
1,679
1,722
456
179
274
29
2,659
1,409
946
538
1,001
913
182
47
184
366
148
160
170
71
915
544
39
583
332
2,659
2015E
43
1,762
1,805
519
182
298
25
2,828
1,713
1,025
422
1,110
910
212
47
201
297
106
188
208
91
890
491
52
543
347
2,828
2016
43
1,805
1,847
536
204
298
25
2,910
1,701
1,205
686
1,182
970
213
88
176
406
101
97
199
118
921
529
111
640
281
2,910
2017E
43
1,885
1,928
649
210
298
28
3,114
1,904
1,166
670
1,408
1,028
218
132
176
273
103
110
203
46
736
543
41
584
151
3,114
2018E
43
1,985
2,027
649
218
298
35
3,228
1,988
1,236
690
1,442
1,088
216
143
176
299
99
118
206
46
769
562
44
605
164
3,228
8 September 2016
8

ONGC
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. div tax)
Valuation (x)
P/E
Cash P/E
EV / EBITDA
EV / Sales
Price / Book Value
Dividend Yield (%)
EV/BOE (USD, 1P basis)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (No. of Days)
Fixed Asset Turnover (x)
Leverage Ratio
Net Debt / Equity (x)
2010
22.7
45.9
117.5
8.0
41.6
2011
24.5
49.6
133.9
9.0
56.2
2012
30.4
58.2
159.5
9.8
32.8
2013
28.3
57.2
178.3
9.5
45.4
2014
30.6
64.7
201.2
9.5
36.8
2015
21.1
55.6
210.9
7.0
51.8
2016
20.4
50.5
215.9
8.5
48.8
2017E
18.8
49.9
225.4
8.0
49.8
2018E
22.1
54.0
237.0
9.0
47.5
10.8
5.3
4.4
2.0
2.1
3.4
6.1
20.2
21.1
21.5
26
2.6
19.5
22.0
23.4
26.2
2.4
8.1
4.2
3.4
1.3
1.5
4.0
5.9
20.7
19.8
25.2
26.8
2.4
8.7
4.3
3.9
1.3
1.4
3.9
5.6
16.8
15.9
18.8
30.5
2.2
8.0
3.8
3.9
1.3
1.2
3.9
5.5
16.3
16.1
16.8
32.9
1.9
11.6
4.4
4.5
1.5
1.2
2.9
5.8
10.4
9.2
9.8
39.5
1.5
12.0
4.9
5.2
1.8
1.1
3.5
5.2
9.5
8.7
9.5
40.2
1.1
13.1
4.9
5.4
2.0
1.1
3.3
5.4
8.5
7.1
9.4
29.0
1.0
11.1
4.5
4.8
1.7
1.0
3.7
5.2
9.6
8.0
9.6
28.9
1.0
-0.1
-0.1
-0.1
0.0
0.1
0.2
0.1
0.2
0.2
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
DD & A
Other op. expenses
Direct Taxes Paid
(Inc)/Dec in Wkg. Capital
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free Cash Flow
(Pur)/Sale of Investments
Inc from Invst
CF from Inv. Activity
Issue of Shares
Inc / (Dec) in Debt
Dividends Paid (incl.tax)
Interest paid incl. other
CF from Fin. Activity
Inc / ( Dec) in Cash
Add: Opening Balance
Closing Balance
2010
304
89
-8
-77
-16
292
-213
79
2
0
-211
3
-3
-81
-2
-83
-2
226
224
2011
343
114
4
-105
70
425
-277
148
33
0
-244
4
0
-118
-4
-118
63
224
287
2012
428
129
107
-119
-71
475
-393
82
3
0
-390
0
92
-85
-4
2
86
287
373
2013
367
121
95
-124
-12
447
-423
24
11
0
-412
2
-3
-110
-7
-118
-83
373
302
2014
394
233
-31
-106
42
533
-616
-83
-21
0
-636
2
247
-98
1
152
49
302
366
2015
274
269
3
-90
-116
340
-351
-11
0
0
-351
0
2
-95
-12
-105
-116
366
297
2016
274
308
0
-68
175
688
-416
272
-40
0
-457
0
17
-85
0
-148
83
297
406
(INR Billion)
2017E
242
67
0
-72
-3
234
-355
-122
-44
0
-400
0
113
-80
0
33
-133
406
273
2018E
291
178
0
-87
14
395
-269
127
-10
0
-279
0
0
-90
0
-90
26
273
299
8 September 2016
9

ONGC
Corporate profile
Company description
Exhibit 1: Sensex rebased
ONGC, a Fortune 500 company, is an eminent
exploration and production (E&P) company in
India. With over 300 discoveries, it has established
in-place reserves of 6.9b ton of oil equivalent
(btoe), with ultimate reserves of 2.4btoe. It
currently accounts for ~68% of India's domestic oil
and gas production. Through its 100% subsidiary
ONGC Videsh Limited (OVL), it has equity
investments in E&P blocks in 16 countries.
Downstream presence is marked through its
subsidiary (71.6% stake), MRPL.
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Jun-16
68.9
11.9
5.5
13.7
Mar-16
68.9
11.9
5.6
13.6
Jun-15
68.9
10.4
7.2
13.4
Exhibit 3: Top holders
Holder Name
Life Insurance Corpoation Of India
Indian Oil Corporation Limited
Gail (India) Limited
% Holding
8.8
7.7
2.4
Note: FII Includes depository receipts
Source: Capitaline
Source: Capitaline
Exhibit 4: Top management
Name
D K Sarraf
A K Srinivasan
Desh Deepak Misra
V N Murthy
Designation
Chairman & Managing Director
Director (Finance)
Director (Human Resources)
Company Secretary
Exhibit 5: Directors
Name
Ajay Kumar Dwivedi
U P Singh
Ved Prakash Mahawar
K Narasimha Murthy
K M Padmanabhan
Name
A P Sawhney
T K Sengupta
Shashi Shankar
Ajai Malhotra
Shireesh Balwant Kedare
Source: Capitaline
Exhibit 6: Auditors
Name
Dhananjay V Joshi & Associates
G D Apte & Co
Khandelwal Jain & Co
Lodha & Co
Mehra Goel & Co
Type
Cost Auditor
Statutory
Statutory
Statutory
Statutory
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
18.8
22.1
Consensus
forecast
19.5
24.1
Variation (%)
-3.4
-8.4
Source: Bloomberg
8 September 2016
10

ONGC
NOTES
8 September 2016
11

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ONGC
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