30 October 2017
2QFY18 Results Update | Sector: Oil & Gas
ONGC
Buy
BSE SENSEX
33,266
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
10,363
ONGC IN
12,833
2,438.3 / 37.5
212 / 155
2/-12/-24
1471
31.9
CMP: INR187
TP: INR231 (+22%)
In-line EBITDA; gas/oil production up 8%/2% YoY
ONGC’s reported revenue of INR190b (+4% YoY, -1% QoQ) came in below our
estimate of INR199.7b due to lower sales/production ratio (-2% QoQ).
Reported EBITDA of INR104.7b (+7% YoY, +47% QoQ) was in-line, led by lower
other expenditure (USD5.5/boe v/s estimate of USD5.8/boe).
PAT grew 3% YoY (32% QoQ) to INR51.3b, beating our estimate of INR43.5b.
The outperformance at PAT level was led by higher other income at INR19.3b
(our estimate: INR8b; up 49% YoY and 126% QoQ). Other income was higher on
account of higher dividend payments from subsidiaries – INR2.3b from OVL and
INR7.5b from MRPL.
Net realization grew 7% YoY (flat QoQ) to USD51.2/bbl. ONGC’s realization was
at a discount of USD0.5/bbl to Brent in 2QFY18 as against the historical trend
of premium of USD1/bbl. Subsidy sharing was nil; we model nil subsidy sharing
for FY18, FY19 and FY20 as well.
Oil sales declined 2.8% QoQ (flat YoY) to 5.84mmt and gas sales grew 11% YoY
(+4% QoQ) to 4.94bcm. Oil production grew ~1% YoY (flat QoQ) to 6.45mmt
and gas production grew 7.7% YoY (+4.3% QoQ) to 6.26bcm.
Gas production is expected to increase again, led by completion of its
development projects. We expect gas production to increase 10-15% annually,
going ahead.
Valuation and view
Rising crude oil prices, growth in oil and gas production, and declining opex led
by cost efficiencies place ONGC on a strong footing. We raise our earnings
estimates by ~20% for FY19/20, led by increase in Brent crude price
assumption to USD60/bbl (v/s USD55/bbl earlier).
For FY18E/19E/20E, with Brent at USD55/60/60/bbl and INR/USD at
64.6/66/67, we expect EPS of INR19/22.8/22.5. The stock trades at 8.3x FY19E
EPS, and EV of 3.6x FY19E EBITDA. Using SOTP, we value the stock at
INR231/share (September 2018 TP), implying 22% upside. Maintain
Buy.
FY17
2Q
3Q
182,866 199,338
-11.1
9.2
87,476 96,440
95,391 102,898
52.2
51.6
34,529 47,039
3,034 3,062
12,920 9,727
70,748 62,524
0
0
70,748 62,524
20,999 19,001
29.7
30.4
49,749 43,523
49,749 43,523
2.7
3.3
27.2
21.8
4Q
217,140
33.7
149,889
67,252
31.0
53,875
3,202
45,195
55,371
0
55,371
11,969
21.6
43,402
43,402
-0.3
20.0
1Q
190,735
7.9
91,929
98,807
51.8
45,204
2,769
8,544
59,378
0
59,378
20,530
34.6
38,847
38,847
-8.2
20.4
FY18
2Q
3QE
189,649 232,124
3.7
16.4
84,957 101,240
104,692 130,884
55.2
56.4
48,389 44,451
3,274
960
19,315 14,052
72,343 99,524
0
0
72,343 99,524
21,036 33,172
29.1
33.3
51,307 66,353
51,307 66,353
3.1
52.5
27.1
28.6
FY17
4QE
237,562
9.4
102,106
135,456
57.0
44,451
960
14,052
104,096
0
104,096
34,695
33.3
69,401
69,401
59.9
29.2
776,048
0.1
417,746
358,302
46.2
172,440
12,217
78,511
252,155
0
252,155
73,155
29.0
179,000
179,000
-8.3
23.1
FY18E
850,070
9.5
380,232
469,838
55.3
182,495
7,964
55,962
335,341
0
335,341
109,433
33
225,909
225,909
26.2
26.6
(INR Million)
FY18 Var vs
2QE est (%)
199,763
-5%
9.2
95,613
-11%
104,151
1%
52.1
44,122
10%
2,800
17%
8,000
141%
65,228
11%
0
65,228
11%
21,741
-3%
33.3
43,488
18%
43,488
18%
-12.6
21.8
Financials & Valuations (INR b)
2017 2018E 2019E
Y/E Mar
1421 1529 1759
Net Sales
471
639
747
EBITDA
211
243
293
PAT
16.4 19.0 22.8
EPS (INR)
20.8 15.4 20.5
Gr. (%)
172
179
187
BV/Sh (INR)
10.1 10.8 12.5
RoE (%)
8.5
9.4 10.5
RoCE (%)
11.4 10.0
8.3
P/E (x)
P/BV (x)
1.1
1.1
1.0
EV/EBITDA (x)
5.6
4.2
3.6
Estimate change
TP change
Rating change
Standalone - Quarterly Earning Model
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
1Q
176,704
-21.5
83,942
92,761
52.5
36,997
2,920
10,668
63,512
0
63,512
21,186
33.4
42,325
42,325
-21.2
24.0
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.
Swarnendu Bhushan- Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com); +91 22 6129 1529
Abhinil Dahiwale- Research Analyst
(Abhinil.Dahiwale@motilaloswal.com); +91 22 3980 4309

ONGC
Earnings call highlights
Has guided total domestic + JV oil production at 25.93mmt in FY18, rising to
26.19mmt in FY19.
Has guided total domestic + JV gas production at 25.34bcm in FY18, rising to
29.53bcm in FY19.
OVL production guidance of 13.659mmtoe for FY18 and 13.925mmtoe for FY19.
Vashistha to commence production of 4.5mmscmd from 4QFY18 – will
command HPHT pricing.
OPaL currently 60% utilized; will ramp up to 80% in FY19.
Standalone capex including outgo of INR75.6b on GSPC’s DD block at INR19b in
1HFY18.
B127 development is on schedule.
Tenders for Ratna/R-series have been invited; will be awarded soon.
KG-DWN-98/2 – no issues in DOC; tenders would be awarded by April 2018.
Expect minor delay – gas from November 2019, oil from April 2020
Expect GST hit of INR10b-15b inclusive of balance sheet items, annually.
HPCL and ONGC both carrying out due diligence; expect to close by March 2018.
Exhibit 1: ONGC: 2QFY18 Net realization at USD51.2/bbl
Net Realization
Subsidy Burden
Gross Realization
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 2Q 3Q 4Q 1Q 2Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Company, MOSL
Exhibit 2: 2QFY18 subsidy nil due to depressed crude prices
Subsidy Burden (INRb)
162
127
85
61
36 38
98
49
9 4
26
50 55
30
57
11 6
0 0 0 0 0 0 0 0
121 120
142
125 123
124
138
126
138
132136
95
123
35
42
123
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 2Q 3Q 4Q 1Q 2Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Company, MOSL
30 October 2017
2

ONGC
Exhibit 3: Oil production (incl. JV) up +1% YoY and 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 2Q 3Q 4Q 1Q 2Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Company, MOSL
Exhibit 4: Gas production (incl. JV) up +7.7% YoY and +4.3% 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 2Q 3Q 4Q 1Q 2Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Company, MOSL
Exhibit 5: Oil + Gas production up +4.1% YoY and +2.1% 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 2Q 3Q 4Q 1Q 2Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Company, MOSL
30 October 2017
3

ONGC
Exhibit 6: Oil sales (incl. JV) flat YoY and -3% 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 2Q 3Q 4Q 1Q 2Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Company, MOSL
Exhibit 7: Gas sales (incl. JV) up +10.8% YoY and +3.9% 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 2Q 3Q 4Q 1Q 2Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Company, MOSL
Exhibit 8: Oil + Gas Sales +4.5% YoY and flat 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 2Q 3Q 4Q 1Q 2Q
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
Source: Company, MOSL
30 October 2017
4

ONGC
Exhibit 9: Higher D,D&A (incl. write-off) led by higher depletion and higher dry well write-offs (INRb)
Depletion
Depreciation
Dry Wells
Survey
Others
Average
Source: Company, MOSL
Valuation and view
Rising crude oil prices, growth in oil and gas production, and declining opex led
by cost efficiencies place ONGC on a strong footing. We raise our earnings
estimates by ~20% for FY19/20, led by increase in Brent crude price assumption
to USD60/bbl (v/s USD55/bbl earlier).
For FY18E/19E/20E, with Brent at USD55/60/60/bbl and INR/USD at 64.6/66/67,
we expect EPS of INR19/22.8/22.5. The stock trades at 8.3x FY19E EPS, and EV of
3.6x FY19E EBITDA. Using SOTP, we value the stock at INR231/share (September
2018 TP), implying 22% upside. Maintain
Buy.
Exhibit 10: SOTP for ONGC (Sep-18 TP)
Valuation of ONGC
Conso FY19-20 EPS
FY19-20 Other income (INR bn)
Other income (INR/share)
FY19-20 EPS excluding other income (INR)
PE (x)
Valuation of ONGC conso (INR/share)
Listed investments
Indian Oil Corporation
Petronet LNG
GAIL
MRPL
Total valuation
Valuation of Mozambique
Recoverable reserves (tcf)
Valuation of block (USD bn)
ONGC's stake (%)
Discount rate (%)
Valuation for ONGC (USD bn)
Value paid (USD bn)
Valuation for ONGC (INR/share)
Valuation of ONGC (INR/share)
75
31
16
50
3
3
(4)
231
Source: MOSL, Company
15
3
1
11
236
22.7
42.4
2.1
20.5
10.0
205
30 October 2017
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
FY08
40.3
2.3
82.3
27.8
25.1
53.0
8.8
61.8
220
85.5
32.6
52.9
FY09
46.0
2
84.8
27.1
25.4
52.6
8.8
61.3
282
88.0
39.6
48.4
FY10
47.5
1.9
69.7
26.5
25.6
52.1
8.9
60.9
116
71.7
15.7
56.0
FY11
45.9
3.9
86.5
27.3
25.3
52.6
9.4
62.0
249
89.4
35.6
53.8
FY12
47.8
4.2
114.5
26.9
25.7
52.6
8.8
61.4
445
117.4
62.4
55.0
FY13
54.4
4.2
110.6
26.1
25.3
51.5
7.3
58.7
494
110.5
62.9
47.6
FY14
60.6
4.2
107.8
26.0
24.9
50.9
8.4
59.3
564
106.7
65.8
40.9
FY15
61.4
4.905
86.0
25.9
23.5
49.5
8.9
58.3
363
86.0
40.9
45.1
FY16
65.5
4.7
47.6
25.9
22.5
48.5
8.9
57.4
17
48.6
1.8
46.8
FY17 FY18E FY19E FY20E
67.1
64.6 66.1
67.0
3.1
3.0
3.5
3.8
49.0
55.4 60.0
60.0
26.4
23.5
50.0
12.8
62.8
0
50.2
0.0
50.2
26.2
25.6
51.8
13.7
65.5
0
56.2
0.0
56.2
26.2
29.5
55.7
14.3
70.0
0
61.2
0.0
61.2
26.3
34.1
60.3
14.3
74.6
0
61.2
0.0
61.2
Source: Company, MOSL
30 October 2017
6

ONGC
ONGC: Story in charts
Exhibit 12: Expect domestic production uptick in
coming years (mmt)
Domestic Oil Prodn (mmt)
51.5
25.3
50.9
24.9
Domestic Gas Prodn (bcm)
51.8
25.6
55.7
29.5
60.3
Exhibit 13: 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
25.7
49.5
23.5
48.5
22.5
48.8
23.3
8.0
6.3
5.1
3.9
34.1
26.9
FY12
26.1
FY13
26.0
FY14
25.9
FY15
25.9
FY16
25.5
26.2
26.2
26.3
FY04
FY06
FY08
FY10
FY12
FY14
FY17 FY18E FY19E FY20E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 14: OVL production is expectied to increase
Domestic Prodn (mmtoe)
58.7
7.3
59.3
8.4
61.4
8.8
OVL Production (mmtoe)
70.0
65.5
61.6
58.3 57.4
14.3
13.7
12.8
8.9
8.9
Exhibit 15: Expect increase in net realization (USD/bbl)
74.6
14.3
117
111
Net
107
86
62
63
60.3
55
48
FY13
66
41
45
FY15
49
2
41
FY14
47
FY16
50
0
50
56
0
56
61
0
61
61
0
61
Upstream Discount
Gross
52.6
51.5
50.9
49.5
48.5
48.8
51.8
55.7
FY12
FY13
FY14
FY15
FY16
FY17 FY18E FY19E FY20E
Source: Company, MOSL
FY12
FY17 FY18E FY19E FY20E
Source: Company, MOSL
Exhibit 16: ONGC: 1 Year forward P/E Chart
P/E (x)
25.0
20.0
15.0
10.0
5.0
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
20.7
14.0
11.2
8.4
7.2
9.5
Source: Company, MOSL
30 October 2017
7

ONGC
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Government Levies
Other Operating Costs
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY13
1,624,032
11.0
256,886
818,387
1,075,274
66.2
548,758
33.8
231,399
317,359
4,838
54,900
367,422
0
367,422
127,519
34.7
-2,294
242,196
242,234
-6.9
14.9
FY14
1,744,771
7.4
261,893
892,607
1,154,500
66.2
590,270
33.8
250,690
339,580
6,243
68,937
402,274
2,423
404,697
127,604
31.5
1,465
275,628
262,235
8.3
15.0
FY15
1,608,897
-7.8
255,065
807,294
1,062,360
66.0
546,538
34.0
289,844
256,694
28,624
59,644
287,715
-14,011
273,704
96,974
35.4
-6,606
183,335
183,638
-30.0
11.4
FY16
1,356,642
-15.7
0
904,510
904,510
66.7
452,132
33.3
224,626
227,506
37,656
81,448
271,298
-79,433
191,865
69,507
36.2
-8,657
131,016
174,478
-5.0
12.9
FY17
1,421,490
4.8
0
950,925
950,925
66.9
470,565
33.1
226,394
244,171
29,534
79,153
293,789
5,910
299,699
95,617
31.9
-10,702
214,783
210,759
20.8
14.8
FY18E
1,529,288
7.6
0
890,127
890,127
58.2
639,161
41.8
265,200
373,961
38,905
49,480
384,537
0
384,537
136,013
35.4
5,303
243,220
243,220
15.4
15.9
FY19E
1,758,836
15.0
0
1,011,442
1,011,442
57.5
747,393
42.5
289,855
457,538
46,200
50,975
462,313
0
462,313
163,523
35.4
5,757
293,034
293,034
20.5
16.7
(INR Million)
FY20E
1,828,040
3.9
0
1,043,609
1,043,609
57.1
784,431
42.9
307,320
477,111
54,000
33,777
456,888
0
456,888
161,604
35.4
6,140
289,144
289,144
-1.3
15.8
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
FY13
42,778
1,482,502
1,525,280
19,466
204,508
142,251
1,891,506
1,234,978
827,192
407,786
83,255
397,397
841,867
21,282
776,748
127,804
153,956
302,540
192,449
636,828
373,384
263,445
139,920
1,891,506
FY14
42,778
1,678,732
1,721,510
29,125
455,881
178,635
2,385,152
1,408,679
945,671
463,008
183,545
538,270
1,094,748
47,459
915,192
148,015
160,284
365,631
241,263
857,070
543,502
313,568
58,122
2,385,152
FY15
42,778
1,761,766
1,804,544
24,731
518,713
181,759
2,529,748
1,712,933
1,025,052
687,881
201,399
422,115
1,122,017
47,491
890,070
106,062
187,970
297,393
298,644
841,225
490,837
350,388
48,845
2,529,748
FY16
42,778
1,935,359
1,978,136
26,518
445,477
264,457
2,714,588
2,665,769
1,156,303
1,509,467
153,301
219,045
357,640
406,669
763,161
99,181
95,013
412,908
156,059
694,694
682,385
12,309
68,467
2,714,588
FY17
64,166
2,147,729
2,211,895
41,243
556,819
290,991
3,100,948
2,881,281
1,281,423
1,599,858
141,737
195,730
375,963
697,096
671,644
113,641
116,926
312,422
128,654
581,079
555,163
25,916
90,564
3,100,948
FY18E
64,166
2,233,007
2,297,173
46,546
740,000
290,991
3,374,710
2,172,507
1,421,549
750,957
141,737
234,767
1,350,627
697,096
850,490
118,125
107,900
484,217
140,249
650,964
567,459
83,505
199,527
3,374,710
FY19E
64,166
2,335,750
2,399,917
52,303
800,000
290,991
3,543,211
2,299,869
1,570,628
729,240
141,737
290,585
1,456,671
697,096
924,772
130,529
124,096
517,208
152,939
696,890
606,685
90,206
227,882
3,543,211
(INR Million)
FY20E
64,166
2,437,130
2,501,297
58,443
1,000,000
290,991
3,850,731
2,412,705
1,727,714
684,991
141,737
357,784
1,556,401
697,096
683,010
112,382
128,979
274,817
166,832
270,288
253,796
16,493
412,722
3,850,731
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Pre & Producing Properties
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
30 October 2017
8

ONGC
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY13
18.9
36.9
118.9
6.3
38.9
FY14
20.4
40.0
134.1
6.3
34.5
FY15
14.3
36.9
140.6
6.3
53.2
13.0
5.1
1.3
1.6
4.8
3.4
-0.8
10.4
9.1
10.4
0.9
0.6
24
43
111
1.1
9.0
0.1
FY16
13.6
31.1
154.1
5.7
66.8
13.7
6.0
1.2
1.8
5.4
3.0
21.8
9.2
8.3
8.4
0.5
0.5
27
26
184
1.1
6.0
0.0
FY17
16.4
34.1
172.4
7.6
52.5
11.4
5.5
1.1
1.9
5.6
4.0
2.7
10.1
8.5
9.3
0.5
0.5
29
30
143
1.2
8.3
0.1
FY18E
19.0
39.6
179.0
10.5
64.9
10.0
4.8
1.1
1.8
4.2
5.5
10.6
10.8
9.4
12.5
0.7
0.5
28
26
135
1.3
9.6
0.1
FY19E
22.8
45.4
187.0
12.7
64.9
8.3
4.2
1.0
1.5
3.6
6.7
11.9
12.5
10.5
14.8
0.8
0.5
27
26
126
1.3
9.9
0.1
FY20E
22.5
46.5
194.9
12.5
64.9
8.4
4.1
1.0
1.7
4.0
6.6
-20.6
11.8
9.9
13.5
0.8
0.5
22
26
51
2.5
8.8
0.3
3.4
1.9
16.8
15.0
20.2
1.3
0.9
29
35
84
1.2
65.6
-0.1
3.4
-6.5
16.2
14.3
17.9
1.2
0.7
31
34
114
1.1
54.4
0.1
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY13
367,422
120,942
-124,257
-11,710
352,397
94,606
447,003
-422,802
24,201
10,698
11,524
-400,580
2,038
-2,678
-110,021
-117,532
-71,109
373,649
302,539
FY14
394,134
233,219
-105,667
42,031
563,718
-31,014
532,704
-615,655
-82,951
-20,671
14,467
-621,859
1,782
247,223
-97,624
152,246
63,091
302,539
365,631
FY15
273,704
269,009
-90,292
-115,768
336,653
3,433
340,086
-350,957
-10,871
0
47,997
-302,960
-23
1,603
-94,953
-105,364
-68,238
365,631
297,393
FY16
273,897
307,994
-68,207
174,596
688,280
7,321
695,601
-416,305
279,296
-40,331
-13,220
-469,856
0
17,213
-127,442
-110,229
115,516
297,393
412,908
FY17
299,699
174,355
-95,617
-148,900
229,536
64,457
293,993
-259,754
34,239
-290,427
8,106
-542,074
0
111,342
-112,705
147,595
-100,486
412,908
312,423
FY18E
384,537
265,200
-136,013
52,875
566,599
0
566,599
-430,000
136,599
0
0
-430,000
0
183,181
-157,942
35,196
171,794
312,423
484,217
FY19E
462,313
289,855
-163,523
-5,321
583,324
0
583,324
-430,000
153,324
0
0
-430,000
0
60,000
-190,290
-120,333
32,991
484,217
517,208
(INR Million)
FY20E
456,888
307,320
-161,604
-437,188
165,416
0
165,416
-430,000
-264,584
0
0
-430,000
0
200,000
-187,764
22,193
-242,391
517,208
274,817
30 October 2017
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 (%)
Sep-17
Promoter
DII
FII
Others
68.1
13.0
5.0
13.9
Jun-17
68.1
12.1
6.0
13.9
Sep-16
68.9
11.9
5.4
13.8
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Life Insurance Corporation Of India
Indian Oil Corporation Limited
Gail (India) Limited
NA
NA
% Holding
9.2
7.7
2.4
0.0
0.0
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Shashi Shankar
A K Srinivasan
Ajay Kumar Dwivedi
Desh Deepak Misra
Designation
Chairman & Managing Director
Director (Finance)
Director (Explorations)
Director (Human Resources)
Exhibit 5: Directors
Name
A K Srinivasan
Ajay Kumar Dwivedi
Desh Deepak Misra
T K Sengupta
Ved Prakash Mahawar
Ajai Malhotra
Deepak Sethi
Name
K M Padmanabhan
Satrupt B Misra
Shireesh Balwant Kedare
Sumit Bose
Vivek Mallya
Ganga Murthy *
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Dass Gupta & Associates
Dhananjay V Joshi & Associates
G D Apte & Co
K C Mehta & Co
Khandelwal Jain & Co
Type
Statutory
Cost Auditor
Statutory
Statutory
Statutory
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
19.0
22.8
21.9
Consensus
forecast
17.8
19.8
21.2
Variation
(%)
6.8
15.3
3.4
Source: Bloomberg
30 October 2017
10

ONGC
NOTES
30 October 2017
11

Disclosures:
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ONGC
Disclosure of Interest Statement
Analyst ownership of the stock
ONGC
No
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30 October 2017
12