ONGC Q4FY16 standalone net profit rises 12.22% yoy to Rs.4,416.11 crore : Beats Estimates

The company’s standalone revenue stood at Rs. 16,384.77 crore, down 24.31% yoy and 11.42% qoq.

May 26, 2016 3:13 IST | India Infoline News Service
Oil & Natural Gas Corpn ( ONGC) , multinational oil and gas company, reported standalone net profit of Rs. 4,416.11 crore for the quarter ended March 31, 2016, registering growth of 12.22% yoy and 243.5% qoq. The company’s standalone revenue stood at Rs. 16,384.77 crore, down 24.31% yoy and 11.42% qoq.

Its standalone core operating profit of Rs. 4,489.16 crore for the quarter, declined by 41.85% yoy and 44.19% qoq. Operating profit margin for the current quarter at 27.4% contracted by 826 bps yoy and 1608 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 16,003.85 crore, declining by 9.75% yoy. Its standalone revenue for the period stood at Rs. 78,387.53 crore, registering decline of 5.41% yoy.

Oil & Natural Gas Corpn Ltd's core operating profit stood at Rs. 31,889.61 crore, recording decline of 2.3% yoy. Operating margin for the current period at 38.39% contracted by 100 bps yoy.

ONGC (Q4 FY16) –Operationally below estimates:

For Q4 FY16, ONGC reported revenue of Rs. 16,385 crore, which was higher than IIFL estimates. The outperformance was on the back of higher than anticipated net realizations for crude oil. Gas segment performance was below forecasts due to the fall in production on the back of shutdown at one of the fields. OPM was at 37.9%, which was below IIFL estimates of 42.4%. As compared to IIFL forecasts, statutory levies were higher by 6.9% while other overheads were higher by 20.1%.  Other income was at Rs. 3,392 crore substantially above IIFL estimates. Resultantly, PAT was at Rs. 4,416 crore v/s IIFL estimate of Rs. 2,478 crore.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 16384.77 15591 5.09
Standalone Net Profit 4416.11 2478 78.21

Standalone EPS for the quarter stood at Rs. 5.16.

Bloomberg estimated the company’s consolidated net profit at Rs. 2,251.90 crore.

Stock Commentary:

Oil & Natural Gas Corpn Ltd is currently trading at Rs. 215.75, up by 5.55 points or 2.64% from its previous closing of Rs. 210.2 on the BSE.

The scrip opened at Rs. 211.7 and has touched a high and low of Rs. 221.4 and Rs. 210.85 respectively. So far 3861507(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 179836.4 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 337.15 on 28-May-2015 and a 52 week low of Rs. 188 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 214.5 and Rs. 204.8 respectively.

The promoters holding in the company stood at 68.93 % while Institutions and Non-Institutions held 17.45 % and 13.62 % respectively.

The stock is currently trading below its 200 DMA.

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