Upload
gagan-jindal
View
218
Download
0
Embed Size (px)
Citation preview
8/13/2019 H13078_AFM
1/46
Comparative analysis of Oil Drilling &
Exploration sector Companies
For AFM ProjectGagan Jindal (H13078)
8/13/2019 H13078_AFM
2/46
1
CONTENTS
Gail India ........................................................................................................................................................................................... 2
Analysis ......................................................................................................................................................................................... 9
Strength and weakness ........................................................................................................................................................ 11
Cairn India ...................................................................................................................................................................................... 12
Analysis ....................................................................................................................................................................................... 19
Strengths and weaknesses .................................................................................................................................................. 20
Hindustan oil exploration company .................................................................................................................................... 21
Analysis ....................................................................................................................................................................................... 28
Strengths and weaknesses .................................................................................................................................................. 28
ONGC ................................................................................................................................................................................................. 29
Analysis ....................................................................................................................................................................................... 36
Strength and Weaknesses ................................................................................................................................................... 36Recommendations....................................................................................................................................................................... 37
Conclusion ...................................................................................................................................................................................... 37
Limitation ....................................................................................................................................................................................... 37
Appendix ......................................................................................................................................................................................... 38
8/13/2019 H13078_AFM
3/46
2
GAIL INDIA
GAIL (India) Ltd was incorporated in August 1984 as a Central Public Sector Undertaking (PSU)
under the Ministry of Petroleum & Natural Gas (MoP & NG). The company was initially given the
responsibility of construction, operation & maintenance of the Hazira Vijaypur Jagdishpur
(HVJ) pipeline Project. It was one of the largest cross-country natural gas pipeline projects in
the world. Originally this 1800 Km long pipeline was built at a cost of Rs 1700 Crores and it laid
the foundation for development of market for natural Gas in India.
GAIL, after having started as a natural gas transmission company during the late eighties, has
grown organically by building large network of Natural Gas Pipelines covering over 9500 Km with
a capacity of around 172 MMSCMD; two LPG Pipelines covering 2040 Km with a capacity of 3.3
MMTPA of LPG; seven gas processing plants for production of LPG and other Liquid Hydrocarbons,
with a production capacity of 1.4 MMTPA.
GAIL has been a leading public enterprise with a consistently excellent financial track record.
The Turnover and PAT have shown remarkable accomplishment with CAGR of 16% and 12%
respectively in the last decade.
GAIL India
Standalone Balance Sheet Horizontal Analysis
'13&'12 '12&'11 '11&'10 '10&'9
Sources Of Funds
Total Share Capital 0.00% 0.00% 0.00% 0.00%
Equity Share Capital 0.00% 0.00% 0.00% 0.00%
Share Application Money N/A N/A N/A N/A
Preference Share Capital N/A N/A N/A N/A
Reserves 12.79% 13.18% 15.80% 15.03%
Revaluation Reserves N/A N/A N/A N/A
Net worth 12.04% 12.32% 14.61% 13.74%
Secured Loans 35.61% 30.06% 36.45% 31.45%
Unsecured Loans 110.25% - -100.00%-
65.66%
Total Debt 71.08% 147.81% 33.28% 23.35%
Total Liabilities 22.93% 24.91% 16.12% 14.46%
Application Of Funds
8/13/2019 H13078_AFM
4/46
3
Gross Block 18.41% 18.82% 5.05% 19.51%
Less: Accum. Depreciation 9.46% 7.26% 6.47% 6.46%
Net Block 24.28% 27.85% 3.96% 31.83%
Capital Work in Progress 13.04% 35.86% 121.40% 8.83%
Investments 4.79% 37.42% 46.48% 1.48%
Inventories 8.14% 66.03% 35.37% 5.04%
Sundry Debtors 33.97% 3.90% 41.54%-
13.86%
Cash and Bank Balance 153.18% -56.30% 1650.88% -8.65%
Total Current Assets 51.44% -11.70% 135.27% -8.47%
Loans and Advances -21.99% 17.62% -18.48% 14.17%
Fixed Deposits - - -100.00% 21.87%
Total CA, Loans & Advances 4.64% 4.98% -19.57% 12.15%
Deferred Credit
Current Liabilities 25.40% 22.11% -4.27% 24.08%
Provisions -58.83% 7.36% -17.64% 23.97%
Total CL & Provisions -3.81% 16.56% -9.78% 24.03%
Net Current Assets-
122.52%-
311.92% -79.74%-
29.43%
Miscellaneous Expenses
Total Assets 22.93% 24.91% 16.12% 14.46%
Contingent Liabilities -2.99% 43.09% -0.53% 16.91%
Book Value (Rs) 12.04% 12.32% 14.61% 13.73%
GAIL India
Standalone Profit and Loss Horizontal Analysis
'13&'12 '12&'11 '11&'10 '10&'9
Income
Sales Turnover 17.64% 24.16% 28.22% 4.46%
Net Sales 17.64% 24.16% 30.19% 5.07%
Other Income 77.02% -2.00% -17.40% -29.10%
Stock Adjustments -88.55% 275.69% 543.47% 311.80%
Total Income 16.98% 24.82% 29.61% 4.09%
Expenditure
Raw Materials 17.50% 30.04% 42.31% 1.26%
Power & Fuel Cost 16.65% 9.54% 6.86% 4.70%
Employee Cost 29.30% -15.77% 16.10% 7.72%
Miscellaneous Expenses 9.73% 52.21% 183.35% 3.25%
Total Expenses 17.19% 29.27% 33.54% 3.32%
Operating Profit 11.24% 5.11% 17.92% 13.80%
PBDIT 15.79% 4.59% 14.32% 7.18%
Interest 67.46% 40.55% -2.72% -15.74%
8/13/2019 H13078_AFM
5/46
4
PBDT 14.81% 4.08% 14.60% 7.67%
Depreciation 24.06% 21.60% 15.74% 0.34%
Profit Before Tax 13.44% 1.91% 14.46% 8.64%
PBT (Post Extra-ordinary Items) 13.44% 1.91% 14.45% 8.91%
Tax 20.72% 0.44% 16.70% 2.74%
Reported Net Profit 10.08% 2.60% 13.42% 11.99%
Total Value Addition 14.70% 23.40% -9.18% 14.72%
Equity Dividend 10.35% 16.00% 0.00% 7.14%
Corporate Dividend Tax 13.41% 15.26% -2.31% 5.36%
Shares in issue (lakhs) 0.00% 0.00% 0.00% 0.00%
Earnings Per Share (Rs) 10.10% 2.60% 13.41% 11.99%
Equity Dividend (%) 10.34% 16.00% 0.00% 7.14%
Book Value (Rs) 12.04% 12.32% 14.61% 13.73%
GAIL India
Standalone Balance Sheet Trend AnalysisMar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 100.00% 100.00% 100.00% 100.00% 100.00%
Reserves 170.05% 150.77% 133.21% 115.03% 100.00%
Net worth 164.04% 146.41% 130.36% 113.74% 100.00%
Secured Loans 316.34% 233.27% 179.36% 131.45% 100.00%
Unsecured Loans 4878.43% 2320.33% 0.00% 34.34% 100.00%
Total Debt 696.97% 407.40% 164.40% 123.35% 100.00%
Total Liabilities 204.09% 166.03% 132.92% 114.46% 100.00%
Application Of Funds
Gross Block 176.61% 149.16% 125.54% 119.51% 100.00%
Less: Accum. Depreciation 133.09% 121.59% 113.35% 106.46% 100.00%
Net Block 217.75% 175.22% 137.05% 131.83% 100.00%
Capital Work in Progress 370.02% 327.34% 240.95% 108.83% 100.00%
Investments 214.07% 204.28% 148.65% 101.48% 100.00%
Inventories 255.29% 236.07% 142.18% 105.04% 100.00%
Sundry Debtors 169.71% 126.68% 121.93% 86.14% 100.00%
Cash and Bank Balance 1769.56% 698.93% 1599.51% 91.35% 100.00%
Total Current Assets 287.96% 190.15% 215.35% 91.53% 100.00%
Loans and Advances 85.40% 109.47% 93.07% 114.17% 100.00%
Fixed Deposits 0.00% 0.00% 0.00% 121.87% 100.00%
Total CA, Loans & Advances 99.08% 94.69% 90.20% 112.15% 100.00%
Current Liabilities 181.89% 145.04% 118.78% 124.08% 100.00%
Provisions 45.13% 109.62% 102.10% 123.97% 100.00%
Total CL & Provisions 125.46% 130.43% 111.90% 124.03% 100.00%
8/13/2019 H13078_AFM
6/46
5
Net Current Assets 6.82% -30.31% 14.30% 70.57% 100.00%
Total Assets 204.09% 166.03% 132.92% 114.46% 100.00%
Contingent Liabilities 161.43% 166.40% 116.29% 116.91% 100.00%
GAIL India
Standalone Profit & Loss account Trend Analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 195.63% 166.30% 133.94% 104.46% 100.00%
Excise Duty 0.00% 0.00% 0.00% 75.69% 100.00%
Net Sales 199.80% 169.85% 136.80% 105.07% 100.00%
Other Income 101.59% 57.39% 58.56% 70.90% 100.00%
Stock Adjustments 1139.60% 9955.00% 2649.80% 411.80% 100.00%
Total Income 196.98% 168.39% 134.91% 104.09% 100.00%
0.00%
100.00%
200.00%
300.00%
400.00%
500.00%
600.00%
700.00%
800.00%
12345
Total Debt Total Liabilities
Expon. (Total Debt) Linear (Total Liabilities)
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
12345
Total Assets
Total Assets Expon. (Total Assets)
8/13/2019 H13078_AFM
7/46
6
Expenditure
Raw Materials 220.18% 187.39% 144.10% 101.26% 100.00%
Power & Fuel Cost 142.97% 122.56% 111.88% 104.70% 100.00%
Employee Cost 136.20% 105.34% 125.07% 107.72% 100.00%
Other Manufacturing Expenses 0.00% 0.00% 0.00% 128.94% 100.00%
Selling and Admin Expenses 0.00% 0.00% 0.00% 140.82% 100.00%Miscellaneous Expenses 488.59% 445.27% 292.55% 103.25% 100.00%
Preoperative Exp Capitalised 0.00% 0.00% 0.00% 123.30% 100.00%
Total Expenses 209.03% 178.37% 137.98% 103.32% 100.00%
Operating Profit 156.92% 141.06% 134.20% 113.80% 100.00%
PBDIT 148.38% 128.15% 122.52% 107.18% 100.00%
Interest 192.92% 115.20% 81.97% 84.26% 100.00%
PBDT 147.44% 128.42% 123.38% 107.67% 100.00%
Depreciation 175.20% 141.22% 116.13% 100.34% 100.00%
Profit Before Tax 143.75% 126.72% 124.35% 108.64% 100.00%
Extra-ordinary items 0.00% 0.00% 0.00% -3.49% 100.00%PBT (Post Extra-ord Items) 144.09% 127.02% 124.64% 108.91% 100.00%
Tax 145.36% 120.41% 119.89% 102.74% 100.00%
Reported Net Profit 143.46% 130.32% 127.02% 111.99% 100.00%
Total Value Addition 147.47% 128.57% 104.20% 114.72% 100.00%
Preference Dividend
Equity Dividend 137.14% 124.29% 107.14% 107.14% 100.00%
Corporate Dividend Tax 134.55% 118.63% 102.93% 105.36% 100.00%
Per share data (annualised)
Shares in issue (lakhs) 100.00% 100.00% 100.00% 100.00% 100.00%
Earning Per Share (Rs) 143.48% 130.32% 127.01% 111.99% 100.00%
Equity Dividend (%) 137.14% 124.29% 107.14% 107.14% 100.00%
Book Value (Rs) 164.03% 146.41% 130.35% 113.73% 100.00%
GAIL India
Standalone Balance Sheet Vertical analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 3.89% 4.78% 5.98% 6.94% 7.94%Equity Share Capital 3.89% 4.78% 5.98% 6.94% 7.94%
Reserves 70.44% 76.78% 84.73% 84.96% 84.54%
Revaluation Reserves 0.00% 0.00% 0.00% 0.00% 0.00%
Net worth 74.34% 81.56% 90.70% 91.90% 92.48%
Secured Loans 10.68% 9.68% 9.30% 7.91% 6.89%
Unsecured Loans 14.99% 8.76% 0.00% 0.19% 0.63%
Total Debt 25.66% 18.44% 9.30% 8.10% 7.52%
8/13/2019 H13078_AFM
8/46
7
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00%
Application Of Funds
Gross Block 95.39% 99.03% 104.11% 115.09% 110.23%
Less: Accum. Depreciation 34.93% 39.23% 45.68% 49.82% 53.56%
Net Block 60.47% 59.81% 58.43% 65.27% 56.67%
Capital Work in Progress 27.55% 29.96% 27.54% 14.45% 15.19%
Investments 11.41% 13.39% 12.17% 9.64% 10.88%
Inventories 4.71% 5.35% 4.03% 3.46% 3.77%
Sundry Debtors 7.83% 7.18% 8.64% 7.08% 9.41%
Cash and Bank Balance 7.23% 3.51% 10.04% 0.67% 0.83%
Total Current Assets 19.77% 16.05% 22.71% 11.21% 14.01%
Loans and Advances 17.90% 28.21% 29.96% 42.68% 42.79%
Fixed Deposits 0.00% 0.00% 0.00% 22.15% 20.81%
Total CA, Loans & Advances 37.68% 44.26% 52.67% 76.04% 77.61%
Deferred Credit
Current Liabilities 31.59% 30.97% 31.68% 38.43% 35.45%
Provisions 5.51% 16.44% 19.13% 26.97% 24.90%Total CL & Provisions 37.10% 47.41% 50.81% 65.40% 60.35%
Net Current Assets 0.58% -3.15% 1.86% 10.64% 17.26%
Miscellaneous Expenses - - - - -
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Contingent Liabilities 57.36% 72.68% 63.45% 74.07% 72.52%
Book Value (Rs) 0.59% 0.64% 0.72% 0.72% 0.73%
GAIL India
Standalone Profit & Loss account vertical analysisMar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 100.00% 100.00% 100.00% 101.54% 102.13%
Excise Duty 0.00% 0.00% 0.00% 1.54% 2.13%
Net Sales 100.00% 100.00% 100.00% 100.00% 100.00%
Other Income 1.61% 1.07% 1.35% 2.13% 3.16%
Stock Adjustments 0.12% 1.23% 0.41% 0.08% 0.02%
Total Income 101.73% 102.30% 101.76% 102.22% 103.18%
Expenditure
Raw Materials 77.15% 77.24% 73.75% 67.47% 70.01%
Power & Fuel Cost 2.62% 2.64% 2.99% 3.64% 3.66%
Employee Cost 1.65% 1.50% 2.22% 2.49% 2.42%
Other Manufacturing Expenses 0.00% 0.00% 0.00% 4.30% 3.50%
Selling and Admin Expenses 0.00% 0.00% 0.00% 1.45% 1.08%
Miscellaneous Expenses 5.09% 5.46% 4.45% 2.05% 2.08%
Preoperative Exp Capitalised 0.00% 0.00% 0.00% -0.08% -0.07%
Total Expenses 86.51% 86.84% 83.40% 81.31% 82.69%
8/13/2019 H13078_AFM
9/46
8
Operating Profit 13.61% 14.40% 17.00% 18.77% 17.33%
PBDIT 15.22% 15.46% 18.36% 20.91% 20.50%
Interest 0.41% 0.29% 0.25% 0.34% 0.43%
PBDT 14.81% 15.18% 18.10% 20.57% 20.07%
Depreciation 2.06% 1.96% 2.00% 2.25% 2.35%
Other Written Off 0.00% 0.00% 0.00% 0.00% 0.00%
Profit Before Tax 12.75% 13.22% 16.10% 18.32% 17.72%
Extra-ordinary items 0.00% 0.00% 0.00% 0.00% -0.04%
PBT (Post Extra-ord Items) 12.75% 13.22% 16.10% 18.32% 17.68%
Tax 4.28% 4.17% 5.16% 5.76% 5.89%
Reported Net Profit 8.46% 9.04% 10.95% 12.56% 11.79%
Total Value Addition 9.36% 9.60% 9.66% 13.84% 12.68%
Preference Dividend 0.00% 0.00% 0.00% 0.00% 0.00%
Equity Dividend 2.56% 2.73% 2.92% 3.81% 3.73%
Corporate Dividend Tax 0.43% 0.44% 0.48% 0.64% 0.63%
Per share data (annualised)
Shares in issue (lakhs) 26.69% 31.40% 38.99% 50.76% 53.33%Earning Per Share (Rs) 0.07% 0.07% 0.09% 0.10% 0.09%
Equity Dividend (%) 0.20% 0.22% 0.23% 0.30% 0.29%
Book Value (Rs) 0.40% 0.42% 0.47% 0.53% 0.49%
GAIL India Financial ratios
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Investment Valuation Ratios
Face Value 10 10 10 10 10Dividend Per Share -- -- -- -- --
Operating Profit Per Share (Rs) 59 57.39 51.24 43.22 36.67
Net Operating Profit Per Share (Rs) 402.8 348.31 276.77 213.09 194.47
Free Reserves Per Share (Rs) -- -- 148.69 126.39 109.07
Bonus in Equity Capital 33.33 33.33 33.33 33.33 33.33
Profitability Ratios
Operating Profit Margin(%) 14.64 16.47 18.5 21.05 18.85
Profit Before Interest And Tax Margin(%) 11.87 13.97 15.72 17.7 15.54
Gross Profit Margin(%) 12.06 14.12 15.97 18 15.94
Cash Profit Margin(%) 10.85 12.18 13.62 15.34 14.1Adjusted Cash Margin(%) 10.85 12.18 13.57 14.97 14.1
Net Profit Margin(%) 8.42 9.94 11.27 12.05 11.16
Adjusted Net Profit Margin(%) 8.42 9.94 11.27 12.1 11.16
Return On Capital Employed(%) 15.79 18.79 21.93 22.04 22.76
Return On Net Worth(%) 15.18 17.83 18.95 18.68 18.35
Adjusted Return on Net Worth(%) 14.99 17.66 18.63 18.59 17.21
Return on Assets Excluding Revaluations 227 196.4 167.24 140.4 121.41
8/13/2019 H13078_AFM
10/46
9
Return on Assets Including Revaluations 227 196.4 167.24 140.4 121.41
Return on Long Term Funds(%) 16.66 19.62 21.99 22.59 22.77
Liquidity And Solvency Ratios
Current Ratio 0.97 0.95 1.07 1.17 1.3
Quick Ratio 0.99 0.94 0.93 1.09 1.21
Debt Equity Ratio 0.54 0.44 0.33 0.3 0.25Long Term Debt Equity Ratio 0.46 0.37 0.33 0.28 0.25
Debt Coverage Ratios
Interest Cover 16 18.34 16.32 12.92 19.09
Total Debt to Owners Fund 0.54 0.44 0.32 0.3 0.25
Financial Charges Coverage Ratio 19.01 21.18 17.32 15.14 22.74
Financial Charges Coverage Ratio Post Tax 14.02 15.97 13.03 11.36 17.09
Management Efficiency Ratios
Inventory Turnover Ratio 27.37 25.6 33.69 58.81 77.64
Debtors Turnover Ratio 20.29 20.21 19.43 17.37 17.9
Investments Turnover Ratio 27.37 25.6 62.68 58.81 77.64Fixed Assets Turnover Ratio 1.4 1.41 1.32 1.08 1.23
Total Assets Turnover Ratio 1.14 1.21 1.16 1.09 1.28
Asset Turnover Ratio 1.24 1.35 1.35 1.08 1.23
ANALYSIS
From the horizontal analysis of balance sheets of last five years of GAIL Indian we can see that
companys total assets were been increasing on year on year basis at an increasing rate that has
become constant at 22% now. It is a sign of growth for the company indicating constant growth
capitalizing on which the company is adding new assets to its kitty.
Also seeing at secured loan we can see that the company believes in sourcing through this
channel as it has been growing at healthy positive rate over the years and correspondingly the
total debt is also increasing which can be a concern but in this case looking at their growth and
increase in assets it can be attributed to it.
We can see from the horizontal analysis of the P&L account of GAIL India that t he companys
income is growing at a healthy rate over the period of 5 years but it has become slow now with
the growth rate coming down to 16% in compare to 24% last fiscal.
The companys operating profit has also taken a jump in the last fiscal over last years 5%
growth rate.
8/13/2019 H13078_AFM
11/46
10
Itsclearly visible from the graphs that the total debt is increasing at a greater rate than total
liabilities growth rate of which has been very stable and almost constant. The good thing about
the company is that the total assets are also going up at a healthy rate as seen in the curve.
From the above trend analysis of the P&L account we can the EPS has been grown constantly and
that if someone would have invested 100 rupees in the company in the tear 2009, it would have
been worth 143 this year in 2013.
Looking at GAILs PBDT also we can say that the company has grown constantly over the span of
5 years which is been reflected in profit before tax also after deducting depreciation over the
years.
One thing that is visible from this analysis is that with improved financial opportunities company
has stopped investing in fixed deposits and probably have diverted its money to more return
oriented areas.
Another observation about the net profit margin which tells us about the money we are getting
back on investing one unit into business. The reducing value of it over the years tells us that in
spite of increasing operational efficiency and better manufacturing facilities we are getting
lesser amount for our own. It may be attributed to the increased investments in advertising and
promotional activities which is upsetting the leverage that we have gained from manufacturing
and operating efficiency.
We can observe from it that the profit before tax has been fluctuating over the years and
percentage wise has gone down over the years while the total expenses are almost same or
rather their ratio has gone up over the time. Also looking at the profit before tax we can
observe that in percentage terms itsgoing down while on the same side its growing in absolute
terms. So it gives us a better picture of GAILs performance over the years.
8/13/2019 H13078_AFM
12/46
11
STRENGTH AND WEAKNESS
Gail being part of a coveted PSU tag and working in oil exploration sector is faring far better
than its competitors in the same sector whether another PSU or Private company. This is
manifested in its financial ratios and the growth the company has projected over the years and
displayed consistency its PBT as shown in the trend analysis. All this are indicators of asuccessful and promising company. At its helm is the fact that the company being a PSU has no
problems or less problems obtaining permissions and clearances from the environment ministry
and also the new projects or areas are automatically given to it.
Also another major observation is the percentage of current liabilities over the years has
remained constant almost at 32% which indicated that the liabilities have grown with the
companys growth. We can observe from the ratios table that the debt equity ratio is well under
1; at 0.54 it is very healthy for a company of this scale. It signifies the debt paying ability of
GAIL with the equity and assets they have.
One of the weaknesses of GAIL is since the govt has provision for the subsidies and sell most of
the produce to already cash ridden PSUs so even after showing sales for the stated number in
the balance sheet the company has a large percentage of money to be received from the
companies which is hardly likely to come for it. So for the company it may seem very good
numbers on paper but actually the receivables are very high in percentage and most companies
are likely to fault on it.
8/13/2019 H13078_AFM
13/46
12
CAIRN INDIA
Cairn India is part of the Vedanta Group, a globally diversified natural resources group with wide
ranging interests in aluminium, copper, zinc, lead, silver, iron ore, etc. Vedanta Resources PLC
initially reached an agreement to acquired 58.5% of Cairn India for a total consideration of $8.67
billion in August 2010, with final shareholder approval in December.
Cairn India is one of the largest independent oil and gas exploration and production companies
in India with a market capitalisation of ~ US$ 10 billion. Cairn India operates more than 25 per
cent of Indias domestic crude oil production. Through its affiliates, Cairn India has been
operating for more than 15 years playing an active role in developing Indias oil and gas
resources. To date, Cairn India has opened 4 frontier basins with over 40 discoveries, 26 in
Rajasthan alone.
The current market capitalisation stands at Rs 62,295.35 crore. The company has reported a
consolidated sales of Rs 4,649.91 crore and a Net Profit of Rs 3 crore for the quarter ended Sep
2013.
Cairn India
Standalone Balance Sheet Horizontal Analysis
'13&'12 '12&'11 '11&'10 '10&'9
Sources Of Funds
Total Share Capital 0.15% 0.29% 0.26% 0.02%
Equity Share Capital 0.15% 0.29% 0.26% 0.02%
Share Application Money - - -100.00% 19.28%
Preference Share Capital - - - -
Reserves 6.98% 0.33% -0.27% -0.21%
Revaluation Reserves - - - -
Net worth 6.57% 0.33% -0.38% -0.17%
Secured Loans - - -100.00%
Unsecured Loans --
100.00%
Total Debt --
100.00% 0.37%
Total Liabilities 6.57% -3.75% -0.35% 4.04%
Application Of Funds
Gross Block 152846.69% 5.02% 2254.55% 83.33%
Less: Accum. Depreciation 698862.50% 33.33% 33.33%
Net Block 118720.70% 3.64% 12250.00%-
66.67%
Capital Work in Progress 6690.11% 147.12% -9.62%-
55.19%
Investments -19.17% 0.33% -1.69% 13.36%
8/13/2019 H13078_AFM
14/46
13
Inventories 2923.73% 23.34% 192.86%
Sundry Debtors 248738.30% 176.47% -89.17%-
12.29%
Cash and Bank Balance 27363.64% 7.84% 18.60%-
69.29%
Total Current Assets 31207.68% 28.45% 19.13% -6.58%
Loans and Advances 5156.33% -13.76% -3.26% -1.52%
Fixed Deposits -100.00% -29.58% 239.17%-
93.04%Total CA, Loans &Advances 858.05% -27.55% 163.83%
-90.20%
Deferred Credit
Current Liabilities -9.77% 703.66% 12.96% 37.52%
Provisions 163558.70% 104.44% -70.10%-
90.46%
Total CL & Provisions 213.83% 700.45% 11.31% 8.53%
Net Current Assets -210.11%-
242.62% 343.28%-
95.26%
Miscellaneous Expenses
-
100.00%Total Assets 6.57% -3.75% -0.35% 4.04%
Contingent Liabilities 14496.51% -98.24% 363.95%-
63.15%
Book Value (Rs) 6.41% 0.04% -0.49% -0.21%
Cairn India
Standalone Profit & Loss account Horizontal Analysis
'13&'12 '12&'11 '11&'10 '10&'9
Income
Sales Turnover 104456.59% 268.20% -25.31% -14.21%
Excise Duty
Net Sales 104456.59% 268.20% -25.31% -14.21%
Other Income 300.48% 142.31% -40.60% -43.50%
Stock Adjustments
Total Income 4232.71% 145.48% -40.30% -43.11%
Expenditure
Employee Cost 627.02% -9.27% 6.67% 51.50%
Other Manufacturing Expenses 8130.91% -67.43% 1756.81% -95.53%
Selling and Admin Expenses -100.00% 39.97% -4.92% -24.86%
Miscellaneous Expenses 6949.59% -58.64% -90.78% 574.33%Preoperative Exp Capitalised
Total Expenses 3044.51% -38.49% -28.95% 16.16%
Operating Profit -10568.53% -44.67% -29.02% 16.96%
PBDIT 4789.18%-
712.44% 133.87% -108.33%
Interest -40.41% -40.30% 181.67% 19394.12%
PBDT 16111.40%-
122.36% 174.81% -158.20%
8/13/2019 H13078_AFM
15/46
14
Depreciation 2404400.00% 33.33% -40.00%
Other Written Off -100.00%
Profit Before Tax 14100.21%-
122.33% 174.67% -169.08%
Extra-ordinary items
PBT (Post Extra-ord Items) 31502.57%-
122.33% 229.48% -157.59%
Tax 7370.34% -100.00% -92.39%
Reported Net Profit 33445.88%-
120.67% 208.44% -227.12%
Total Value Addition 3044.51% -38.49% -28.96% 16.16%
Shares in issue (lakhs) 0.15% 0.29% 0.26% 0.02%
Earning Per Share (Rs) 33465.22%-
120.54% 211.11% -224.14%
Equity Dividend (%)
Book Value (Rs) 6.41% 0.04% -0.49% -0.21%
Cairn IndiaStandalone Profit & Loss account vertical analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 100.00% 100.00% 100.00% 100.00% 100.00%
Excise Duty 0.00% 0.00% 0.00% 0.00% 0.00%
Net Sales 100.00% 100.00% 100.00% 100.00% 100.00%
Other Income 9.78% 2552.84% 3879.08% 4877.81% 7406.17%
Stock Adjustments 0.15% 0.00% 0.00% 0.00% 0.00%
Total Income 109.93% 2652.84% 3979.08% 4977.81% 7506.17%
Expenditure 0.00% 0.00% 0.00% 0.00% 0.00%Raw Materials 0.00% 0.00% 0.00% 0.00% 0.00%
Power & Fuel Cost 0.00% 0.00% 0.00% 0.00% 0.00%
Employee Cost 1.04% 150.11% 609.21% 426.56% 241.55%
Other Manufacturing Expenses 20.66% 262.50% 2967.78% 119.38% 2290.35%
Selling and Admin Expenses 0.00% 378.07% 994.56% 781.25% 891.96%
Miscellaneous Expenses 3.74% 55.45% 493.72% 3997.50% 508.58%
Preoperative Exp Capitalised 0.00% 0.00% 0.00% 0.00% 0.00%
Total Expenses 25.45% 846.14% 5065.27% 5324.69% 3932.44%
Operating Profit 74.71% -746.14% -4965.27% -5224.69% -3832.44%
PBDIT 84.48% 1806.70% -1086.19% -346.88% 3573.73%Interest 0.72% 1266.48% 7811.30% 2071.25% 9.12%
PBDT 83.76% 540.23% -8897.49% -2418.13% 3564.61%
Depreciation 10.45% 0.45% 1.26% 1.56% 0.00%
Other Written Off 0.00% 0.00% 0.00% 0.00% 559.79%
Profit Before Tax 73.31% 539.77% -8898.74% -2419.69% 3004.83%
Extra-ordinary items 89.84% 0.00% 0.00% 402.50% 0.00%
PBT (Post Extra-ord Items) 163.15% 539.77% -8898.74% -2017.19% 3004.83%
8/13/2019 H13078_AFM
16/46
15
Tax 2.87% 40.23% 0.00% 137.50% 1550.40%
Reported Net Profit 160.27% 499.55% -8898.33% -2154.69% 1454.16%
Total Value Addition 25.45% 846.14% 5064.85% 5324.69% 3932.44%
Preference Dividend 0.00% 0.00% 0.00% 0.00% 0.00%
Equity Dividend 23.87% 0.00% 0.00% 0.00% 0.00%
Corporate Dividend Tax 3.87% 0.00% 0.00% 0.00% 0.00%
Per share data (annualised) 0.00% 0.00% 0.00% 0.00% 0.00%
Shares in issue (lakhs) 207.61% 216749.55% 795781.17% 592804.38% 508490.08%
Earning Per Share (Rs) 0.84% 2.61% -46.86% -11.25% 7.77%
Equity Dividend (%) 1.25% 0.00% 0.00% 0.00% 0.00%
Book Value (Rs) 1.94% 1901.70% 6999.16% 5253.44% 4516.35%
Cairn India
Standalone Balance Sheet vertical analysisMar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 5.62% 5.98% 5.73% 5.70% 5.93%
Equity Share Capital 5.62% 5.98% 5.73% 5.70% 5.93%
Share Application Money 0.00% 0.00% 0.00% 0.14% 0.12%
Preference Share Capital
Reserves 94.38% 94.02% 90.19% 90.12% 93.95%
Revaluation Reserves
Networth 100.00% 100.00% 95.93% 95.96% 100.00%Secured Loans 0.00% 0.00% 0.00% 4.04% 0.00%
Unsecured Loans 0.00% 0.00% 4.07% 0.00% 0.00%
Total Debt 0.00% 0.00% 4.07% 4.04% 0.00%
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00%
Application Of Funds
Gross Block 12.23% 0.01% 0.01% 0.00% 0.00%
Less: Accum. Depreciation 3.29% 0.00% 0.00% 0.00% 0.00%
Net Block 8.94% 0.01% 0.01% 0.00% 0.00%
Capital Work in Progress 10.79% 0.17% 0.07% 0.07% 0.17%
Investments 77.64% 102.37% 98.20% 99.54% 91.36%
Inventories 0.31% 0.01% 0.01% 0.00% 0.00%
Sundry Debtors 3.44% 0.00% 0.00% 0.00% 0.01%
Cash and Bank Balance 0.44% 0.00% 0.00% 0.00% 0.00%
Total Current Assets 4.20% 0.01% 0.01% 0.01% 0.01%
Loans and Advances 10.85% 0.22% 0.25% 0.25% 0.27%
Fixed Deposits 0.00% 1.44% 1.97% 0.58% 8.63%
Total CA, Loans & Advances 15.05% 1.67% 2.22% 0.84% 8.91%
8/13/2019 H13078_AFM
17/46
16
Deffered Credit 0.00% 0.00% 0.00% 0.00% 0.00%
Current Liabilities 3.57% 4.21% 0.50% 0.44% 0.34%
Provisions 8.85% 0.01% 0.00% 0.01% 0.10%
Total CL & Provisions 12.42% 4.22% 0.51% 0.45% 0.44%
Net Current Assets 2.63% -2.54% 1.72% 0.39% 8.48%
Miscellaneous Expenses 0.00% 0.00% 0.01% 0.00% 0.00%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
0.00% 0.00% 0.00% 0.00% 0.00%
Contingent Liabilities 4.54% 0.03% 1.81% 0.39% 1.10%
Book Value (Rs) 0.52% 0.52% 0.50% 0.51% 0.53%
Cairn IndiaStandalone Balance Sheet Trend analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of FundsTotal Share Capital 100.72% 100.57% 100.28% 100.02% 100.00%
Equity Share Capital 100.72% 100.57% 100.28% 100.02% 100.00%
Share Application Money 0.00% 0.00% 0.00% 119.28% 100.00%
Reserves 106.83% 99.86% 99.53% 99.79% 100.00%
Revaluation Reserves
Net worth 106.33% 99.78% 99.45% 99.83% 100.00%
Total Liabilities 106.33% 99.78% 103.67% 104.04% 100.00%
Application Of Funds
Gross Block 6933583.33% 4533.33% 4316.67% 183.33% 100.00%
Less: Accum. DepreciationNet Block 5069683.33% 4266.67% 4116.67% 33.33% 100.00%
Capital Work in Progress 6795.13% 100.07% 40.50% 44.81% 100.00%
Investments 90.37% 111.80% 111.44% 113.36% 100.00%
Inventories
Sundry Debtors 65337.43% 26.26% 9.50% 87.71% 100.00%
Cash and Bank Balance 10789.29% 39.29% 36.43% 30.71% 100.00%
Total Current Assets 44753.29% 142.95% 111.29% 93.42% 100.00%
Loans and Advances 4318.86% 82.17% 95.27% 98.48% 100.00%
Fixed Deposits 0.00% 16.64% 23.62% 6.96% 100.00%
Total CA, Loans & Advances 179.55% 18.74% 25.87% 9.80% 100.00%
Current Liabilities 1126.51% 1248.44% 155.35% 137.52% 100.00%
Provisions 9547.62% 5.83% 2.85% 9.54% 100.00%
Total CL & Provisions 3034.43% 966.91% 120.80% 108.53% 100.00%
Net Current Assets 32.97% -29.94% 20.99% 4.74% 100.00%
Miscellaneous Expenses
Total Assets 106.33% 99.78% 103.67% 104.04% 100.00%
Contingent Liabilities 439.46% 3.01% 170.94% 36.85% 100.00%
8/13/2019 H13078_AFM
18/46
17
Book Value (Rs) 105.71% 99.34% 99.30% 99.79% 100.00%
Cairn IndiaStandalone Profit & Loss account vertical analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 246675.07% 235.92% 64.08% 85.79% 100.00%
Excise Duty
Net Sales 246675.07% 235.92% 64.08% 85.79% 100.00%
Other Income 325.67% 81.32% 33.56% 56.50% 100.00%
Stock Adjustments
Total Income 3612.65% 83.38% 33.97% 56.89% 100.00%Employee Cost 1065.93% 146.61% 161.60% 151.50% 100.00%
Other Manufacturing Expenses 2225.61% 27.04% 83.03% 4.47% 100.00%
Selling and Admin Expenses 0.00% 100.00% 71.45% 75.14% 100.00%
Miscellaneous Expenses 1813.49% 25.72% 62.20% 674.33% 100.00%
Preoperative Exp Capitalised
Total Expenses 1596.26% 50.76% 82.53% 116.16% 100.00%
Operating Profit -4808.42% 45.93% 83.02% 116.96% 100.00%
95.00%
100.00%
105.00%
110.00%
12345
Total Liabilities
Total Liabilities Expon. (Total Liabilities)
95.00%
100.00%
105.00%
110.00%
12345
Total Assets
Total Assets Expon. (Total Assets)
8/13/2019 H13078_AFM
19/46
18
PBDIT 5831.44% 119.27% -19.47% -8.33% 100.00%
Interest 19532.35% 32779.41% 54908.82% 19494.12% 100.00%
PBDT 5796.40% 35.76% -159.94% -58.20% 100.00%
Depreciation
Other Written Off 0.00% 0.00% 0.00% 0.00% 100.00%
Profit Before Tax 6018.11% 42.38% -189.76% -69.08% 100.00%
Extra-ordinary items
PBT (Post Extra-ord Items) 13393.31% 42.38% -189.76% -57.59% 100.00%
Tax 457.29% 6.12% 0.00% 7.61% 100.00%
Reported Net Profit 27188.00% 81.05% -392.09% -127.12% 100.00%
Total Value Addition 1596.26% 50.76% 82.53% 116.16% 100.00%
Shares in issue (lakhs) 100.71% 100.57% 100.28% 100.02% 100.00%
Earning Per Share (Rs) 26620.69% 79.31% -386.21% -124.14% 100.00%
Book Value (Rs) 105.71% 99.34% 99.30% 99.79% 100.00%
Cairn India Financial RatiosMar '13 Mar '12 Mar '11 Mar '10 Mar '09
Investment Valuation Ratios
Face Value 10 10 10 10 10
Dividend Per Share -- -- -- -- --
Operating Profit Per Share (Rs) 62.92 48.52 43.7 3.82 2.07
Net Operating Profit Per Share (Rs) 91.74 62.18 53.79 8.26 7.22
Free Reserves Per Share (Rs) -- -- 201.07 168.29 162.74
Bonus in Equity Capital -- -- -- -- --
Profitability RatiosOperating Profit Margin(%) 68.58 78.02 81.23 46.28 28.65
Profit Before Interest And Tax Margin(%) 60.27 61.05 68.43 32.32 23.33
Gross Profit Margin(%) 63.83 65.88 69.57 36.8 28.19
Cash Profit Margin(%) 68.7 74.07 73.38 53.78 29.42
Adjusted Cash Margin(%) 68.7 74.07 73.38 53.78 29.42
Net Profit Margin(%) 64.95 62.02 60.9 58.93 48.54
Adjusted Net Profit Margin(%) 64.95 62.02 60.9 58.93 48.54
Return On Capital Employed(%) 25.62 18.12 16.98 2.13 1.75
Return On Net Worth(%) 25.27 16.43 15.77 3.1 2.45
Adjusted Return on Net Worth(%) 24.98 16.64 16.04 2.39 1.4Return on Assets Excluding Revaluations 249.71 253.18 211.07 178.29 172.74
Return on Assets Including Revaluations 249.71 253.18 211.07 178.29 172.74
Return on Long Term Funds(%) 25.62 18.12 16.98 2.13 1.75
Liquidity And Solvency Ratios
Current Ratio 2.32 2.49 2.28 1.23 3.34
Quick Ratio 2.29 2.46 2.18 1.07 3.26
Debt Equity Ratio -- -- 0.07 0.1 0.13
8/13/2019 H13078_AFM
20/46
19
Long Term Debt Equity Ratio -- -- 0.07 0.1 0.16
Debt Coverage Ratios
Interest Cover 178.03 38.76 25.27 48.58 150.09
Financial Charges Coverage Ratio 190.15 45.14 28.97 53.68 105.76
Financial Charges Coverage Ratio Post Tax 188.72 42.53 26.71 69.35 130.59
Management Efficiency RatiosInventory Turnover Ratio 89.37 87.17 142.77 34.57 157.39
Debtors Turnover Ratio 9.27 7.96 11.43 6.83 9.56
Investments Turnover Ratio 89.37 87.17 142.77 34.57 157.39
Fixed Assets Turnover Ratio 2.12 1.63 1.56 9.64 15.71
Total Assets Turnover Ratio 0.54 0.52 0.56 0.13 0.12
Asset Turnover Ratio 0.37 0.26 0.26 9.64 15.71
ANALYSIS
Based on the above analysis we can see that the company has grown exponentially in the last
fiscal that happened after Vedanta group officially took over the company and injected money
into new projects under the brand name CAIRN ENERGY.
As we can see the net sales and sales turnover has grown exponentially in the last fiscal and it is
attributed to cairn being taken over by Vedanta group.
Based on the above report we can make the conclusion that the companys turnaround after
being bought over by Vedanta group was very successful as it started showing positive Profitsand PBDT.
The EPS for Cairn has also gone up substantially and that itself is result of the turnaround
happening in company and its policies.
Also the net profit margin of the company is on the higher side which is around 63% that means
the company is into a niche product category and can dictate terms and is keeping back 63% of
the sales vale with themselves for further investments and explorations.
8/13/2019 H13078_AFM
21/46
20
STRENGTHS AND WEAKNESSES
The companys strength lies in its being a private player in the market and it is not marred by
the debt ridden buyers and psus and unlike them it is selling and earning of its sales. Also they
being a private player can have a better pricing policy and can dictate their own terms and the
same is being reflected in their high net profit margin ratio also.
Another blessing for CAIRN is that Vedanta group is at its helm and they can now use their
extreme spread out network and contacts to expand themselves abroad and can move out of its
old shackles and boundaries.
The weakness for the company being that its a nave company in the sector compared to others
that I have taken and this could go either way, only time will tell its tale. But being one of
fastest growing companies in the sector can be blessing in disguise for it.
8/13/2019 H13078_AFM
22/46
8/13/2019 H13078_AFM
23/46
8/13/2019 H13078_AFM
24/46
23
1744.76%
Total Value Addition -24.29% -8.54% 198.13% 289.11%
Preference Dividend
Equity Dividend-
100.00%
Corporate Dividend Tax-
100.00%
Per share data (annualised)
Shares in issue (lakhs) 0.00% 0.00% 0.00% 0.00%
Earning Per Share (Rs)-
1742.41% -58.21% 92.79% -22.20%
Equity Dividend (%)-
100.00%
Book Value (Rs) -45.65% 2.84% 6.60% 4.09%
Hindustan Oil Exploration Company
Standalone Balance Sheet vertical analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 8.86% 7.54% 7.40% 7.44% 10.98%
Equity Share Capital 8.86% 7.54% 7.40% 7.44% 10.98%
Share Application Money 0.00% 0.00% 0.00% 0.00% 0.00%
Preference Share Capital 0.00% 0.00% 0.00% 0.00% 0.00%
Reserves 35.70% 62.20% 59.18% 55.36% 78.05%
Revaluation Reserves 0.00% 0.00% 0.00% 0.00% 0.00%
Networth 44.56% 69.74% 66.58% 62.80% 89.02%
Secured Loans 0.57% 1.25% 3.33% 4.72% 10.98%Unsecured Loans 54.87% 29.01% 30.09% 32.48% 0.00%
Total Debt 55.44% 30.26% 33.42% 37.20% 10.98%
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00%
Application Of Funds
Gross Block 1.05% 1.03% 101.05% 101.99% 20.16%
Less: Accum. Depreciation 0.43% 0.48% 16.59% 10.50% 11.45%
Net Block 0.62% 0.55% 84.47% 91.49% 8.71%
Capital Work in Progress 95.62% 95.22% 5.73% 3.73% 86.27%
Investments 1.87% 4.15% 6.25% 0.17% 0.97%
Inventories 2.66% 2.71% 2.50% 2.47% 5.58%Sundry Debtors 1.01% 1.15% 2.69% 2.35% 1.77%
Cash and Bank Balance 5.92% 4.59% 0.47% 0.32% 1.01%
Total Current Assets 9.59% 8.45% 5.66% 5.13% 8.35%
Loans and Advances 10.94% 6.64% 15.30% 3.95% 9.79%
Fixed Deposits 0.00% 0.00% 2.19% 4.24% 22.23%
Total CA, Loans & Advances 20.53% 15.09% 23.15% 13.32% 40.37%
Current Liabilities 12.09% 9.78% 15.05% 3.87% 33.46%
8/13/2019 H13078_AFM
25/46
24
Provisions 6.56% 5.25% 4.55% 4.83% 2.86%
Total CL & Provisions 18.65% 15.03% 19.60% 8.70% 36.32%
Net Current Assets 1.88% 0.06% 3.55% 4.62% 4.05%
Miscellaneous Expenses 0.00% 0.02% 0.00% 0.00% 0.00%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Contingent Liabilities 7.47% 3.14% 5.82% 5.80% 5.68%
Book Value (Rs) 3.41% 5.34% 5.10% 4.81% 6.82%
Hindustan Oil Exploration Company
Standalone Profit & Loss account vertical analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 100.00% 100.00% 100.00% 100.00% 100.00%
Excise Duty 0.00% 0.00% 0.00% 0.00% 0.00%
Net Sales 100.00% 100.00% 100.00% 100.00% 100.00%
Other Income -515.92% 16.52% 2.37% 9.07% 54.23%
Stock Adjustments 0.16% -4.88% -0.42% 3.55% -2.63%
Total Income -415.76% 111.64% 101.95% 112.62% 151.60%
Expenditure 0.00% 0.00% 0.00% 0.00% 0.00%
Raw Materials 0.07% 0.00% 0.00% 0.00% 0.00%
Power & Fuel Cost 0.00% 0.56% 0.31% 0.47% 1.49%
Employee Cost 9.15% 7.15% 3.83% 7.05% 10.62%
Other Manufacturing Expenses 29.61% 34.77% 16.33% 13.84% 4.07%
Selling and Admin Expenses 0.00% -9.72% -1.61% -7.43% -11.53%
Miscellaneous Expenses 1.99% 5.85% 0.51% 1.37% 1.80%Preoperative Exp Capitalised 0.00% 0.00% 0.00% 0.00% 0.00%
Total Expenses 40.82% 38.61% 19.38% 15.31% 6.46%
Operating Profit 59.33% 56.51% 80.20% 88.24% 90.91%
PBDIT -456.59% 73.03% 82.57% 97.31% 145.14%
Interest 9.73% 7.20% 10.05% 17.97% 56.79%
PBDT -466.32% 65.83% 72.52% 79.34% 88.35%
Depreciation 80.52% 36.63% 37.07% 33.69% 13.88%
Other Written Off 0.00% 0.00% 0.00% 0.00% 0.00%
Profit Before Tax -546.84% 29.20% 35.45% 45.64% 74.48%
Extra-ordinary items 0.00% 0.00% 0.30% 8.29% -0.16%PBT (Post Extra-ord Items) -546.84% 29.20% 35.75% 53.93% 74.31%
Tax -39.67% 7.07% 11.43% 24.22% 11.42%
Reported Net Profit -507.16% 22.12% 24.31% 29.69% 62.89%
Total Value Addition 40.75% 38.62% 19.38% 15.31% 6.47%
Preference Dividend 0.00% 0.00% 0.00% 0.00% 0.00%
Equity Dividend 0.00% 0.00% 1.98% 0.00% 0.00%
Corporate Dividend Tax 0.00% 0.00% 0.33% 0.00% 0.00%
8/13/2019 H13078_AFM
26/46
8/13/2019 H13078_AFM
27/46
26
Hindustan Oil Exploration Company
Standalone Profit & Loss account Trend analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 127.51% 177.73% 387.24% 164.43% 100.00%
Excise Duty
Net Sales 127.51% 177.73% 387.24% 164.43% 100.00%
Other Income-
1213.12% 54.15% 16.93% 27.50% 100.00%
Stock Adjustments -7.59% 329.91% 62.05% -221.88% 100.00%
Total Income -349.69% 130.88% 260.42% 122.15% 100.00%
Expenditure
Raw Materials
Power & Fuel Cost 0.00% 66.93% 81.10% 51.97% 100.00%
Employee Cost 109.83% 119.67% 139.67% 109.17% 100.00%
Other Manufacturing Expenses 926.80% 1517.00% 1552.74% 558.50% 100.00%Selling and Admin Expenses 0.00% 149.90% 54.18% 105.91% 100.00%
Miscellaneous Expenses 141.18% 578.43% 109.80% 125.49% 100.00%
Preoperative Exp Capitalised
Total Expenses 806.18% 1062.73% 1162.00% 389.82% 100.00%
Operating Profit 83.21% 110.47% 341.62% 159.59% 100.00%
PBDIT -401.12% 89.43% 220.31% 110.24% 100.00%
Interest 21.85% 22.53% 68.55% 52.04% 100.00%
PBDT -672.96% 132.42% 317.84% 147.65% 100.00%
Depreciation 739.85% 469.20% 1034.60% 399.24% 100.00%
Other Written Off
Profit Before Tax -936.19% 69.67% 184.30% 100.77% 100.00%
Extra-ordinary items 0.00% 0.00% -714.29%-
8292.86% 100.00%
PBT (Post Extra-ord Items) -938.26% 69.83% 186.29% 119.34% 100.00%
Tax -442.86% 109.97% 387.56% 348.61% 100.00%
Total Value Addition 803.27% 1060.98% 1160.07% 389.11% 100.00%
Shares in issue (lakhs) 100.00% 100.00% 100.00% 100.00% 100.00%
Earning Per Share (Rs)-
1029.51% 62.68% 150.00% 77.80% 100.00%
Equity Dividend (%)
Book Value (Rs) 62.02% 114.12% 110.96% 104.09% 100.00%
8/13/2019 H13078_AFM
28/46
27
Hindustan Oil Exploration Company financial ratios
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Investment Valuation Ratios
Face Value 10 10 10 10 10
Dividend Per Share -- -- -- -- --
Operating Profit Per Share (Rs) 9.06 20.46 6.15 6.01 5.96
Net Operating Profit Per Share (Rs) 12.97 26.5 11.93 7.55 7.25
Free Reserves Per Share (Rs) -- 80.56 74.88 71.39 67.48
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Operating Profit Margin(%) 69.85 71.19 51.52 79.62 82.2
Profit Before Interest And Tax Margin(%) 32.24 34.88 49.66 47.08 64.83
Gross Profit Margin(%) 37.03 35.81 51.1 67.58 76.59
Cash Profit Margin(%) 62.19 57.41 21.74 44.37 39.77
Adjusted Cash Margin(%) 62.19 57.45 21.74 44.37 39.77Net Profit Margin(%) 17.76 23.05 27.49 38.51 23.07
Adjusted Net Profit Margin(%) 17.76 22.96 27.49 38.51 23.07
Return On Capital Employed(%) 5.04 7.51 4.77 9.18 6.29
Return On Net Worth(%) 2.83 6.89 3.97 5.12 2.55
Adjusted Return on Net Worth(%) 5.37 6.84 3.08 4.79 2.22
Return on Assets Excluding Revaluations 93.21 90.57 84.88 81.39 77.48
Return on Assets Including Revaluations 93.21 90.57 84.88 81.39 77.48
Return on Long Term Funds(%) 5.04 8.61 4.77 9.18 6.29
Liquidity And Solvency Ratios
Current Ratio 1.02 1.19 1.29 1.11 1.95Quick Ratio 0.83 0.54 0.66 0.82 1.48
Debt Equity Ratio 0.43 0.5 0.59 0.12 0.15
Long Term Debt Equity Ratio 0.43 0.5 0.59 0.12 0.15
Debt Coverage Ratios
Interest Cover 7.96 10.72 11.07 19.28 10.34
Total Debt to Owners Fund 0.43 0.5 0.59 0.12 0.15
Financial Charges Coverage Ratio 13 8.28 3.36 2.51 2.74
Financial Charges Coverage Ratio Post Tax 9.17 7.14 2.77 2.37 2.38
Management Efficiency Ratios
Inventory Turnover Ratio 3.41 7.5 15.29 18 10.97Debtors Turnover Ratio 4.75 7.49 5.01 6.28 5.8
Investments Turnover Ratio 3.41 26.12 13.43 18 10.97
Fixed Assets Turnover Ratio 0.11 0.19 4.94 3.18 0.6
Total Assets Turnover Ratio 0.1 0.19 0.08 0.08 0.08
Asset Turnover Ratio 0.1 0.2 0.09 0.42 0.6
8/13/2019 H13078_AFM
29/46
28
ANALYSIS
Total debt for the company has grown at 55% in the last fiscal and at the same time
total assets have come down by -3.4%. The inventory turnover ratio has also being
increasing at a decreasing rate that means slowdown in terms of output. From the profit
and loss statement we can observe that the total income of the company has declined
by -350% in the last fiscal and it has reported loss for the first time last fiscal that too to
the tune of INR 5500 crore.
From the trend analysis also we can see that the companys net assets and inventory has
come down gradually over the past 5 years that means company is looking at a dark
unpredictable future.
One of the other parameter that is also reflecting towards the same point of view is the
high depreciation value the company has shown to cover up for the losses its making.
They have made a genuine effort but even it has fallen flat on its face. The companys
external investments has also gone down from 900% to 230% this year indicating they
have been removing their assets from external investments and trying to save the
company by investing back into the business.
Companys loan and advances figure from the trend analysis will show it to have
increased from 98% to 138% showing the dismal state of it.
STRENGTHS AND WEAKNESSES
The company possess no strength at the time in terms of the financial ratios and analysis is
concerned but one main strength the company has is being a public sector company and the
support of govt they have with them. Government has the unlimited power to inject money in to
the company and to help it turnaround. Also its the government who decides on the policies and
regulations and they can gain advantage if these are tweaked to help this company.
The companys current and past data shows a very bad state of affairs and it looks like there is
little hope of it turning around. Everything is indicating towards it. Hope a better future for it.
8/13/2019 H13078_AFM
30/46
29
ONGC
Oil and Natural Gas Corporation Limited (ONGC) is an Indian multinational oil and gas company
headquartered in Dehradun, India. It is a Public Sector Undertaking (PSU) of the Government of
India, under the administrative control of the Ministry of Petroleum and Natural Gas (MoP&NG).
It is India's largest oil and gas exploration and production company. It produces around 69% of
India's crude oil (equivalent to around 30% of the country's total demand) and around 62% of its
natural gas.
The current market capitalisation stands at Rs 245,970.34 crore. The company has reported a
standalone sales of Rs 22,311.98 crore and a Net Profit of Rs 6 crore for the quarter ended Sep
2013. ONGC group's turnover during 2011-12 has been Rs. 150,185 Crore with net profit of Rs.
28,144 Crore. ONGC paid the highest-ever dividend of Rs. 8,342 Crore. The Net Worth of ONGC
Group of companies is Rs. 135,266 Crore.
Oil and Natural Gas Corporation
Standalone Balance Sheet horizontal analysis
'13&'12 '12&'11 '11&'10 '10&'9
Sources Of Funds
Total Share Capital 0.00% 0.00% 100.00% 0.00%
Equity Share Capital 0.00% 0.00% 100.00% 0.00%
Share Application Money
Preference Share Capital
Reserves 10.58% 16.57% 9.49% 11.16%
Revaluation Reserves
Net worth 10.18% 15.85% 11.71% 10.86%
Secured Loans-
100.00%
Unsecured Loans -100.00% 2.31%
Total Liabilities 5.96% 20.46% -5.96% 9.41%
Application Of Funds
Gross Block 7.16% 11.82% 12.50% 16.62%
Less: Accum. Depreciation 0.93% 10.47% 10.66% 9.74%
Net Block 26.78% 16.30% 19.11% 50.26%Capital Work in Progress -80.32% 12.19% 16.45% 5.95%
Investments 75.86% 0.65% -10.21% 13.39%
Inventories 10.43% 25.41% -11.96% 15.22%
Cash and Bank Balance -34.32% 38.97% 5019.71% 75.16%
Total Current Assets -18.10% 39.35% 181.73% -3.44%
Loans and Advances 152.60% 10.44% -43.03% 13.86%
Fixed Deposits -100.00% -5.21%
8/13/2019 H13078_AFM
31/46
30
Total CA, Loans & Advances 77.51% 21.53% -34.33% 7.79%
Deferred Credit
Current Liabilities -0.45% 6.78% 5.58% 1.45%
Provisions -1.94% 8.31% -41.36% 20.99%
Total CL & Provisions -1.10% 7.44% -21.49% 11.87%
Net Current Assets 324.07% 106.44% -66.94% -1.32%
Miscellaneous Expenses -100.00% 29.31%
Total Assets 5.96% 20.46% -5.96% 9.41%
Contingent Liabilities 28.77% 35.89% -47.76% 8.76%
Book Value (Rs) 10.18% 15.85% -72.07% 10.86%
Oil and Natural Gas Corporation
Standalone Profit & Loss account Horizontal analysis
'13&'12 '12&'11 '11&'10 '10&'9
IncomeSales Turnover 8.48% 11.96% 13.01% -6.02%
Excise Duty-
100.00% -35.44%
Net Sales 8.48% 11.96% 13.42% -5.86%
Other Income -28.40% 122.89% -5.78% -11.49%
Stock Adjustments-
100.00% 607.51% -89.06% 45.55%
Total Income 5.04% 17.34% 12.15% -6.14%
Expenditure
Raw Materials 539.98% 3.28% -73.88% -77.70%
Power & Fuel Cost 112.19% 10.72% -45.25% -3.84%Employee Cost 688.88% 0.49% -76.81% 23.84%
Other Manufacturing Expenses -49.00% 12.83% -34.52% 36.13%
Selling and Admin Expenses-
100.00% 196.23%
Miscellaneous Expenses 176.95% 2.83% 809.99% -6.27%
Preoperative Exp Capitalised
Total Expenses 61.21% 8.97% 24.22% -28.79%
Operating Profit -26.97% 14.25% 6.61% 16.90%
PBDIT -27.17% 22.74% 5.52% 13.70%
Interest -20.64% 38.71% -99.78% 32.90%
PBDT -27.17% 22.73% 45.05% 7.86%
Depreciation 11.71% -2.35% 46.43% 20.37%
Profit Before Tax -16.58% 32.56% 11.50% 5.54%
PBT (Post Extra-ord Items) -16.71% 32.68% 10.54% 2.86%
Tax -16.50% 32.53% 5.25% -2.12%
Reported Net Profit -16.71% 32.76% 12.86% 3.98%
Total Value Addition 50.75% 9.10% 36.01% -3.30%
Equity Dividend -2.56% 11.43% 6.06% 3.13%
8/13/2019 H13078_AFM
32/46
31
Corporate Dividend Tax -2.07% 9.29% 4.66% -0.14%
Per share data (annualised)
Shares in issue (lakhs) 0.00% 0.00% 300.00% 0.00%
Earning Per Share (Rs) -16.69% 32.73% -71.78% 3.97%
Equity Dividend (%) -2.56% 11.43% -46.97% 3.13%
Book Value (Rs) 10.18% 15.85% -72.07% 10.86%
Oil and Natural Gas Corporation
Standalone Balance Sheet vertical analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 3.44% 3.64% 4.39% 2.06% 2.26%
Equity Share Capital 3.44% 3.64% 4.39% 2.06% 2.26%
Share Application Money 0.00% 0.00% 0.00% 0.00% 0.00%
Preference Share Capital 0.00% 0.00% 0.00% 0.00% 0.00%Reserves 96.56% 92.53% 95.61% 82.12% 80.82%
Revaluation Reserves 0.00% 0.00% 0.00% 0.00% 0.00%
Networth 100.00% 96.17% 100.00% 84.18% 83.08%
Secured Loans 0.00% 3.83% 0.00% 0.00% 0.00%
Unsecured Loans 0.00% 0.00% 0.00% 15.82% 16.92%
Total Debt 0.00% 3.83% 0.00% 15.82% 16.92%
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00%
Application Of Funds
Gross Block 77.51% 76.64% 82.56% 69.01% 64.74%
Less: Accum. Depreciation 55.43% 58.18% 63.45% 53.92% 53.75%Net Block 22.08% 18.46% 19.12% 15.09% 10.99%
Capital Work in Progress 11.58% 62.37% 66.97% 54.08% 55.84%
Investments 7.37% 4.44% 5.32% 5.57% 5.37%
Inventories 4.58% 4.40% 4.22% 4.51% 4.28%
Sundry Debtors 5.52% 5.27% 4.10% 2.95% 4.31%
Cash and Bank Balance 10.62% 17.13% 14.85% 0.27% 0.17%
Total Current Assets 20.72% 26.81% 23.17% 7.73% 8.76%
Loans and Advances 81.37% 34.13% 37.23% 61.46% 59.05%
Fixed Deposits 0.00% 0.00% 0.00% 17.31% 19.98%
Total CA, Loans & Advances 102.09% 60.94% 60.40% 86.50% 87.80%Deferred Credit 0.00% 0.00% 0.00% 0.00% 0.00%
Current Liabilities 24.57% 26.15% 29.50% 26.28% 28.34%
Provisions 18.56% 20.05% 22.31% 35.77% 32.35%
Total CL & Provisions 43.13% 46.20% 51.81% 62.05% 60.69%
Net Current Assets 58.96% 14.73% 8.60% 24.45% 27.11%
Miscellaneous Expenses 0.00% 0.00% 0.00% 0.81% 0.69%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
8/13/2019 H13078_AFM
33/46
32
Contingent Liabilities 28.77% 23.68% 20.99% 37.78% 38.01%
Book Value (Rs) 0.12% 0.11% 0.12% 0.39% 0.39%
Oil and Natural Gas Corporation
Standalone Profit & Loss account vertical analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 100.00% 100.00% 100.00% 100.36% 100.53%
Excise Duty 0.00% 0.00% 0.00% 0.36% 0.53%
Net Sales 100.00% 100.00% 100.00% 100.00% 100.00%
Other Income 6.55% 9.92% 4.99% 6.00% 6.38%
Stock Adjustments 0.00% 0.12% 0.02% 0.20% 0.13%
Total Income 106.55% 110.04% 105.00% 106.20% 106.51%
Expenditure
Raw Materials 5.06% 0.86% 0.93% 4.04% 17.04%
Power & Fuel Cost 0.40% 0.21% 0.21% 0.43% 0.42%
Employee Cost 12.45% 1.71% 1.91% 9.32% 7.09%
Other Manufacturing Expenses 12.10% 25.74% 25.54% 44.24% 30.59%
Selling and Admin Expenses 0.00% 0.00% 0.00% -21.98% -6.99%
Miscellaneous Expenses 29.59% 11.59% 12.62% 1.57% 1.58%
Preoperative Exp Capitalised 0.00% 0.00% 0.00% 0.00% 0.00%
Total Expenses 59.59% 40.10% 41.20% 37.62% 49.73%
Operating Profit 40.41% 60.02% 58.82% 62.58% 50.39%
PBDIT 46.96% 69.94% 63.80% 68.58% 56.78%Interest 0.03% 0.05% 0.04% 18.72% 13.26%
PBDT 46.92% 69.90% 63.76% 49.86% 43.52%
Depreciation 10.09% 9.80% 11.23% 8.70% 6.81%
Other Written Off 0.00% 12.20% 12.07% 0.00% 0.00%
Profit Before Tax 36.83% 47.90% 40.46% 41.16% 36.71%
Extra-ordinary items -0.06% -0.01% -0.05% 0.31% 1.24%
PBT (Post Extra-ord Items) 36.77% 47.89% 40.41% 41.46% 37.95%
Tax 11.59% 15.06% 12.72% 13.71% 13.18%
Reported Net Profit 25.21% 32.83% 27.69% 27.83% 25.20%
Total Value Addition 54.54% 39.24% 40.27% 33.58% 32.70%Equity Dividend 9.79% 10.90% 10.95% 11.71% 10.69%
Corporate Dividend Tax 1.57% 1.74% 1.78% 1.93% 1.82%
Shares in issue (lakhs) 103.07% 111.81% 125.19% 35.50% 33.42%
Earning Per Share (Rs) 0.03% 0.04% 0.03% 0.13% 0.12%
Equity Dividend (%) 0.23% 0.25% 0.26% 0.55% 0.50%
Book Value (Rs) 0.18% 0.17% 0.17% 0.68% 0.58%
8/13/2019 H13078_AFM
34/46
33
Oil and Natural Gas Corporation
Standalone Balance Sheet trend analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 200.00% 200.00% 200.00% 100.00% 100.00%
Equity Share Capital 200.00% 200.00% 200.00% 100.00% 100.00%
Reserves 156.89% 141.88% 121.71% 111.16% 100.00%
Net worth 158.07% 143.46% 123.84% 110.86% 100.00%
Unsecured Loans 0.00% 0.00% 0.00% 102.31% 100.00%
Total Debt 0.00% 28.06% 0.00% 102.31% 100.00%
Total Liabilities 131.32% 123.94% 102.88% 109.41% 100.00%
Application Of Funds
Gross Block 157.22% 146.72% 131.20% 116.62% 100.00%
Less: Accum. Depreciation 135.41% 134.16% 121.44% 109.74% 100.00%
Net Block 263.90% 208.16% 178.98% 150.26% 100.00%
Capital Work in Progress 27.24% 138.42% 123.39% 105.95% 100.00%Investments 180.21% 102.47% 101.82% 113.39% 100.00%
Inventories 140.48% 127.21% 101.44% 115.22% 100.00%
Sundry Debtors 168.07% 151.69% 97.82% 74.90% 100.00%
Cash and Bank Balance 8185.90% 12462.58% 8967.73% 175.16% 100.00%
Total Current Assets 310.46% 379.06% 272.03% 96.56% 100.00%
Loans and Advances 180.95% 71.64% 64.86% 113.86% 100.00%
Fixed Deposits 0.00% 0.00% 0.00% 94.79% 100.00%
Total CA, Loans & Advances 152.70% 86.02% 70.78% 107.79% 100.00%
Current Liabilities 113.86% 114.38% 107.11% 101.45% 100.00%
Provisions 75.34% 76.83% 70.94% 120.99% 100.00%Total CL & Provisions 93.33% 94.36% 87.83% 111.87% 100.00%
Net Current Assets 285.61% 67.35% 32.63% 98.68% 100.00%
Miscellaneous Expenses 0.00% 0.00% 0.00% 129.31% 100.00%
Total Assets 131.32% 123.94% 102.88% 109.41% 100.00%
Contingent Liabilities 99.41% 77.20% 56.81% 108.76% 100.00%
Book Value (Rs) 39.52% 35.87% 30.96% 110.86% 100.00%
8/13/2019 H13078_AFM
35/46
34
Oil and Natural Gas Corporation
Standalone Profit & Loss account Trend analysis
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 129.01% 118.92% 106.21% 93.98% 100.00%
Excise Duty 0.00% 0.00% 0.00% 64.56% 100.00%
Net Sales 129.69% 119.55% 106.77% 94.14% 100.00%
Other Income 133.07% 185.86% 83.39% 88.51% 100.00%
Stock Adjustments 0.00% 112.63% 15.92% 145.55% 100.00%
Total Income 129.74% 123.51% 105.26% 93.86% 100.00%
Expenditure
Raw Materials 38.50% 6.02% 5.83% 22.30% 100.00%
Power & Fuel Cost 123.70% 58.30% 52.65% 96.16% 100.00%
Employee Cost 227.70% 28.86% 28.72% 123.84% 100.00%
Other Manufacturing Expenses 51.30% 100.58% 89.15% 136.13% 100.00%
Selling and Admin Expenses 0.00% 0.00% 0.00% 296.23% 100.00%
Miscellaneous Expenses 2429.09% 877.07% 852.93% 93.73% 100.00%
Preoperative Exp Capitalised
Total Expenses 155.40% 96.39% 88.46% 71.21% 100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
12345
Total Debt Total Liabilities
Linear (Total Debt) Expon. (Total Liabilities)
0.00%
50.00%
100.00%
150.00%
12345
Total Assets
Total Assets Expon. (Total Assets)
8/13/2019 H13078_AFM
36/46
35
Operating Profit 103.99% 142.38% 124.62% 116.90% 100.00%
PBDIT 107.26% 147.27% 119.98% 113.70% 100.00%
Interest 0.33% 0.41% 0.30% 132.90% 100.00%
PBDT 139.83% 192.01% 156.45% 107.86% 100.00%
Depreciation 192.25% 172.10% 176.25% 120.37% 100.00%
Profit Before Tax 130.12% 155.98% 117.67% 105.54% 100.00%
Extra-ordinary items -6.72% -1.21% -4.25% 23.27% 100.00%
PBT (Post Extra-ord Items) 125.66% 150.86% 113.70% 102.86% 100.00%
Tax 113.99% 136.52% 103.02% 97.88% 100.00%
Reported Net Profit 129.76% 155.79% 117.35% 103.98% 100.00%
Total Value Addition 216.32% 143.49% 131.52% 96.70% 100.00%
Equity Dividend 118.75% 121.88% 109.37% 103.13% 100.00%
Corporate Dividend Tax 111.86% 114.22% 104.51% 99.86% 100.00%
Shares in issue (lakhs) 400.00% 400.00% 400.00% 100.00% 100.00%
Earning Per Share (Rs) 32.44% 38.94% 29.34% 103.97% 100.00%
Equity Dividend (%) 59.38% 60.94% 54.69% 103.13% 100.00%
Book Value (Rs) 39.52% 35.87% 30.96% 110.86% 100.00%
Oil and Natural Gas Corporation financial ratios
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Investment Valuation Ratios
Face Value 5 10 10 10 10
Dividend Per Share -- -- -- -- --
Operating Profit Per Share (Rs) 68.64 56.35 209.54 200.39 189.8
Net Operating Profit Per Share (Rs) 172.18 137.93 477.93 489.2 452.45Free Reserves Per Share (Rs) -- 128.11 459.9 409.23 354.24
Bonus in Equity Capital 91.83 91.83 83.66 83.66 83.66
Profitability Ratios
Operating Profit Margin(%) 39.86 40.85 43.84 40.96 41.94
Profit Before Interest And Tax Margin(%) 30.1 32.15 24.67 25.06 26.42
Gross Profit Margin(%) 31.08 33.69 25.53 26.21 27.59
Cash Profit Margin(%) 31.63 24.23 35.11 32.87 33.42
Adjusted Cash Margin(%) 31.63 24.23 35.11 32.87 33.42
Net Profit Margin(%) 18.5 18.16 18.34 18.08 19.65
Adjusted Net Profit Margin(%) 18.5 18.16 18.34 18.08 19.65Return On Capital Employed(%) 26.42 37.32 23.7 32.64 39.25
Return On Net Worth(%) 20.62 19.6 19.29 21.61 25.67
Adjusted Return on Net Worth(%) 18.07 18.78 18.33 22.44 25.7
Return on Assets Excluding Revaluations 159.48 133.87 470.18 428.14 361.86
Return on Assets Including Revaluations 159.48 133.87 470.18 428.14 361.86
Return on Long Term Funds(%) 28.29 37.97 28.14 34.47 39.28
Liquidity And Solvency Ratios
8/13/2019 H13078_AFM
37/46
36
Current Ratio 0.86 0.87 0.9 0.9 1.04
Quick Ratio 0.86 0.81 0.93 0.8 0.92
Debt Equity Ratio 0.11 0.05 0.23 0.07 0.01
Long Term Debt Equity Ratio 0.04 0.04 0.04 0.01 0.01
Debt Coverage Ratios
Interest Cover 92.14 153.77 59.08 135.2 229.26
Total Debt to Owners Fund 0.11 0.05 0.23 0.07 0.01
Financial Charges Coverage Ratio 146.04 4.65 96.35 199.89 331.91
Financial Charges Coverage Ratio Post Tax 119.61 3.67 76.91 148.69 250.52
Management Efficiency Ratios
Inventory Turnover Ratio 11.48 26.69 29.28 44.1 25.96
Debtors Turnover Ratio 13.71 13.95 14.27 14.71 16.31
Investments Turnover Ratio 11.48 26.69 29.28 44.1 25.96
Fixed Assets Turnover Ratio 0.86 1.19 1.14 1.34 1.32
Total Assets Turnover Ratio 1.01 1.04 0.76 1.19 1.25
Asset Turnover Ratio 1.06 0.94 1.14 1.34 1.32
ANALYSIS
ONGC is one of the maharatnas in our country and is one of the most profitable PSUs. It is
being reflected in investments first of all with investments rising from 0.7% to 75%. This
indicates the company success and venturing into different sectors or hoping to do in future.
Also although the companys PBDT has come down from the last years number but it still is in
positive. The dip is because of the slowdown in the economy and hence the dip in the demandsector. The company is looking at bright prospects in the later future.
The debt to equity ratio which stands at 0.11 is also very good news for ONGC. It shows its high
reserves of liquid assets that can be used anytime to pay off the little debt the company has.
STRENGTH AND WEAKNESSES
The biggest strength it possess is the brand name it has in the sector. It is a PSU company that is
carrying the brand name high and is posting profit year after year.
The only weakness it has is the high account receivables or the debtors it has in the market.
8/13/2019 H13078_AFM
38/46
37
RECOMMENDATIONS
The recommendation that I have for the companies is to maintain its debt to equity ratio under
the safe zone and never let it extend to such a situation where it is very hard to turn back. The
safe limit for maximum cases is 1.5. At no point should they allow to spiral it upwards.
Companies which have a high debt equity ratio should take appropriate measures to reduce it.
Another important aspect that should be looked into is the investment made by the companies.
Companies should look into investing for future and should divert sufficient funds towards the
same and in no case be fudging the data.
Companies should also look into paying decent if not high dividends to shareholders. This keeps
up the faith of the shareholders and increases their trust in the firm.
The net profit margin is an important indicator of the health of the companies. This aspect
should be looked into closely and tracked continuously
CONCLUSION
I consider the Oil Drilling and Exploration sector to be extremely attractive for value investors
who are seeking consistency in performance from companies. Overall the sector is seeing a boom
after the downturn it experienced in the past few years. Oil being one of the most crucial and
industry driver almost will be much in demand in the coming years especially for the growing
economies like India. Plus some of the above analyzed companies are from the public sector so
the onus is more on them for growth since they have all the requisite resources and backup of
the govt. Some of companies which are not doing well are recommended to restructure and
focus on the humongous task of growth and look forward to the bright future.
LIMITATION
The study is limited in scope that it hasnt considered all the parameters necessary to gauge a
companys performance. Also the study is limited in scope of seeing and commenting on the
whole sector of oil drilling and exploration considering only the four companies we have
considered.
8/13/2019 H13078_AFM
39/46
38
APPENDIX
GAIL India
Standalone Balance Sheet
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 1,268.48 1,268.48 1,268.48 1,268.48 1,268.48
Equity Share Capital 1,268.48 1,268.48 1,268.48 1,268.48 1,268.48
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 22,959.32 20,356.00 17,984.86 15,530.52 13,501.15
Revaluation Reserves 0 0 0 0 0
Networth 24,227.80 21,624.48 19,253.34 16,799.00 14,769.63
Secured Loans 3,479.75 2,566.00 1,973.00 1,446.00 1,100.00
Unsecured Loans 4,884.77 2,323.35 0 34.38 100.13
Total Debt 8,364.52 4,889.35 1,973.00 1,480.38 1,200.13
Total Liabilities 32,592.32 26,513.83 21,226.34 18,279.38 15,969.76
Application Of Funds
Gross Block 31,091.25 26,257.88 22,099.54 21,037.67 17,603.98
Less: Accum. Depreciation 11,383.80 10,400.26 9,695.97 9,106.57 8,553.66
Net Block 19,707.45 15,857.62 12,403.57 11,931.10 9,050.32
Capital Work in Progress 8,977.82 7,942.45 5,846.15 2,640.51 2,426.33
Investments 3,719.00 3,548.93 2,582.52 1,763.01 1,737.27
Inventories 1,535.33 1,419.74 855.11 631.7 601.41Sundry Debtors 2,551.34 1,904.48 1,833.00 1,295.04 1,503.34
Cash and Bank Balance 2,357.94 931.33 2,131.35 121.73 133.25
Total Current Assets 6,444.61 4,255.55 4,819.46 2,048.47 2,238.00
Loans and Advances 5,835.31 7,480.13 6,359.75 7,800.99 6,833.03
Fixed Deposits 0 0 0 4,049.78 3,322.90Total CA, Loans &Advances 12,279.92 11,735.68 11,179.21 13,899.24 12,393.93
Deffered Credit 0 0 0 0 0
Current Liabilities 10,297.01 8,211.34 6,724.61 7,024.42 5,661.24
Provisions 1,794.86 4,359.51 4,060.50 4,930.06 3,976.85
Total CL & Provisions 12,091.87 12,570.85 10,785.11 11,954.48 9,638.09
Net Current Assets 188.05 -835.17 394.1 1,944.76 2,755.84
Miscellaneous Expenses 0 0 0 0 0
Total Assets 32,592.32 26,513.83 21,226.34 18,279.38 15,969.76
Contingent Liabilities 18,695.27 19,270.72 13,467.19 13,539.33 11,581.19
Book Value (Rs) 191 170.48 151.78 132.43 116.44
8/13/2019 H13078_AFM
40/46
39
GAIL India
Standalone Profit & Loss account
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 47,522.69 40,397.95 32,536.52 25,375.80 24,292.24
Excise Duty 0 0 0 384.15 507.53
Net Sales 47,522.69 40,397.95 32,536.52 24,991.65 23,784.71
Other Income 764.51 431.88 440.7 533.55 752.52
Stock Adjustments 56.98 497.75 132.49 20.59 5
Total Income 48,344.18 41,327.58 33,109.71 25,545.79 24,542.23
Expenditure
Raw Materials 36,662.91 31,202.70 23,994.13 16,860.64 16,651.23
Power & Fuel Cost 1,243.10 1,065.68 972.85 910.39 869.51
Employee Cost 785.45 607.48 721.23 621.2 576.67
Other Manufacturing Expenses 0 0 0 1,074.79 833.55
Selling and Admin Expenses 0 0 0 363.12 257.86Miscellaneous Expenses 2,418.99 2,204.54 1,448.40 511.17 495.1
Preoperative Exp Capitalised 0 0 0 -20.64 -16.74
Total Expenses 41,110.45 35,080.40 27,136.61 20,320.67 19,667.18
Operating Profit 6,469.22 5,815.30 5,532.40 4,691.57 4,122.53
PBDIT 7,233.73 6,247.18 5,973.10 5,225.12 4,875.05
Interest 195.02 116.46 82.86 85.18 101.09
PBDT 7,038.71 6,130.72 5,890.24 5,139.94 4,773.96
Depreciation 980.94 790.71 650.25 561.82 559.91Other Written Off 0 0 0 0 0
Profit Before Tax 6,057.77 5,340.01 5,239.99 4,578.12 4,214.05
Extra-ordinary items 0 0 0 0.35 -10.03
PBT (Post Extra-ord Items) 6,057.77 5,340.01 5,239.99 4,578.47 4,204.02
Tax 2,035.57 1,686.17 1,678.86 1,438.63 1,400.32
Reported Net Profit 4,022.20 3,653.84 3,561.13 3,139.84 2,803.70
Total Value Addition 4,447.54 3,877.70 3,142.48 3,460.03 3,015.95
Preference Dividend 0 0 0 0 0
Equity Dividend 1,217.74 1,103.57 951.36 951.36 887.93
Corporate Dividend Tax 203.03 179.02 155.32 158.99 150.9Per share data (annualised)
Shares in issue (lakhs) 12,684.77 12,684.77 12,684.77 12,684.77 12,684.77
Earning Per Share (Rs) 31.71 28.8 28.07 24.75 22.1
Equity Dividend (%) 96 87 75 75 70
Book Value (Rs) 191 170.48 151.78 132.43 116.44
8/13/2019 H13078_AFM
41/46
40
Cairn India
Standalone Balance Sheet
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 1,910.24 1,907.40 1,901.92 1,896.97 1,896.67
Equity Share Capital 1,910.24 1,907.40 1,901.92 1,896.97 1,896.67
Share Application Money 0 0 0 46.4 38.9
Preference Share Capital 0 0 0 0 0
Reserves 32,107.12 30,012.22 29,912.64 29,993.37 30,055.23
Revaluation Reserves 0 0 0 0 0
Networth 34,017.36 31,919.62 31,814.56 31,936.74 31,990.80
Secured Loans 0 0 0 1,345.00 0
Unsecured Loans 0 0 1,350.00 0 0
Total Debt 0 0 1,350.00 1,345.00 0
Total Liabilities 34,017.36 31,919.62 33,164.56 33,281.74 31,990.80
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Application Of Funds
Gross Block 4,160.15 2.72 2.59 0.11 0.06
Less: Accum. Depreciation 1,118.34 0.16 0.12 0.09 0
Net Block 3,041.81 2.56 2.47 0.02 0.06
Capital Work in Progress 3,671.41 54.07 21.88 24.21 54.03
Investments 26,410.27 32,674.80 32,568.25 33,129.09 29,225.40
Inventories 107.04 3.54 2.87 0.98 0
Sundry Debtors 1,169.54 0.47 0.17 1.57 1.79
Cash and Bank Balance 151.05 0.55 0.51 0.43 1.4Total Current Assets 1,427.63 4.56 3.55 2.98 3.19
Loans and Advances 3,690.47 70.21 81.41 84.15 85.45
Fixed Deposits 0 459.45 652.42 192.36 2,761.88Total CA, Loans &Advances 5,118.10 534.22 737.38 279.49 2,850.52
Deffered Credit 0 0 0 0 0
Current Liabilities 1,212.91 1,344.20 167.26 148.07 107.67
Provisions 3,011.32 1.84 0.9 3.01 31.54
Total CL & Provisions 4,224.23 1,346.04 168.16 151.08 139.21
Net Current Assets 893.87 -811.82 569.22 128.41 2,711.31
Miscellaneous Expenses 0 0 2.75 0 0
Total Assets 34,017.36 31,919.61 33,164.57 33,281.73 31,990.80
Contingent Liabilities 1,545.77 10.59 601.28 129.6 351.74
Book Value (Rs) 178.08 167.35 167.28 168.11 168.46
8/13/2019 H13078_AFM
42/46
41
Cairn India
Standalone Profit & Loss account
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Income
Sales Turnover 9,200.98 8.8 2.39 3.2 3.73
Excise Duty 0 0 0 0 0
Net Sales 9,200.98 8.8 2.39 3.2 3.73
Other Income 899.67 224.65 92.71 156.09 276.25
Stock Adjustments 14.06 0 0 0 0
Total Income 10,114.71 233.45 95.1 159.29 279.98
Expenditure
Raw Materials 0 0 0 0 0
Power & Fuel Cost 0 0 0 0 0
Employee Cost 96.04 13.21 14.56 13.65 9.01
Other Manufacturing Expenses 1,901.34 23.1 70.93 3.82 85.43
Selling and Admin Expenses 0 33.27 23.77 25 33.27Miscellaneous Expenses 344.02 4.88 11.8 127.92 18.97
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 2,341.40 74.46 121.06 170.39 146.68
Operating Profit 6,873.64 -65.66 -118.67 -167.19 -142.95
PBDIT 7,773.31 158.99 -25.96 -11.1 133.3
Interest 66.41 111.45 186.69 66.28 0.34
PBDT 7,706.90 47.54 -212.65 -77.38 132.96
Depreciation 961.8 0.04 0.03 0.05 0Other Written Off 0 0 0 0 20.88
Profit Before Tax 6,745.10 47.5 -212.68 -77.43 112.08
Extra-ordinary items 8,266.12 0 0 12.88 0
PBT (Post Extra-ord Items) 15,011.22 47.5 -212.68 -64.55 112.08
Tax 264.45 3.54 0 4.4 57.83
Reported Net Profit 14,746.77 43.96 -212.67 -68.95 54.24
Total Value Addition 2,341.40 74.46 121.05 170.39 146.68
Preference Dividend 0 0 0 0 0
Equity Dividend 2,196.53 0 0 0 0
Corporate Dividend Tax 356.34 0 0 0 0Per share data (annualised)
Shares in issue (lakhs) 19,102.00 19,073.96 19,019.17 18,969.74 18,966.68
Earning Per Share (Rs) 77.2 0.23 -1.12 -0.36 0.29
Equity Dividend (%) 115 0 0 0 0
Book Value (Rs) 178.08 167.35 167.28 168.11 168.46
8/13/2019 H13078_AFM
43/46
8/13/2019 H13078_AFM
44/46
43
Hindustan Oil Exploration Company
Standalone Profit & Loss account
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
IncomeSales Turnover 108.61 151.39 329.85 140.06 85.18
Excise Duty 0 0 0 0 0
Net Sales 108.61 151.39 329.85 140.06 85.18
Other Income -560.34 25.01 7.82 12.7 46.19
Stock Adjustments 0.17 -7.39 -1.39 4.97 -2.24
Total Income -451.56 169.01 336.28 157.73 129.13
Expenditure
Raw Materials 0.08 0 0 0 0
Power & Fuel Cost 0 0.85 1.03 0.66 1.27
Employee Cost 9.94 10.83 12.64 9.88 9.05Other Manufacturing Expenses 32.16 52.64 53.88 19.38 3.47
Selling and Admin Expenses 0 -14.72 -5.32 -10.4 -9.82
Miscellaneous Expenses 2.16 8.85 1.68 1.92 1.53
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 44.34 58.45 63.91 21.44 5.5
Operating Profit 64.44 85.55 264.55 123.59 77.44
PBDIT -495.9 110.56 272.37 136.29 123.63
Interest 10.57 10.9 33.16 25.17 48.37
PBDT -506.47 99.66 239.21 111.12 75.26
Depreciation 87.45 55.46 122.29 47.19 11.82
Other Written Off 0 0 0 0 0
Profit Before Tax -593.92 44.2 116.92 63.93 63.44
Extra-ordinary items 0 0 1 11.61 -0.14
PBT (Post Extra-ord Items) -593.92 44.2 117.92 75.54 63.3
Tax -43.09 10.7 37.71 33.92 9.73
Reported Net Profit -550.83 33.49 80.2 41.59 53.57
Total Value Addition 44.26 58.46 63.92 21.44 5.51
Preference Dividend 0 0 0 0 0
Equity Dividend 0 0 6.52 0 0
Corporate Dividend Tax 0 0 1.08 0 0
Per share data (annualised)
Shares in issue (lakhs) 1,304.93 1,304.93 1,304.93 1,304.93 1,304.93
Earning Per Share (Rs) -42.21 2.57 6.15 3.19 4.1
Equity Dividend (%) 0 0 5 0 0
Book Value (Rs) 50.3 92.55 89.99 84.42 81.1
8/13/2019 H13078_AFM
45/46
44
Oil and Natural Gas Corporation
Standalone Balance Sheet
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of FundsTotal Share Capital 4,277.76 4,277.76 4,277.76 2,138.89 2,138.89
Equity Share Capital 4,277.76 4,277.76 4,277.76 2,138.89 2,138.89
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 120,175.46 108,678.97 93,226.67 85,143.72 76,596.53
Revaluation Reserves 0 0 0 0 0
Networth 124,453.22 112,956.73 97,504.43 87,282.61 78,735.42
Secured Loans 0 4,500.00 0 0 0
Unsecured Loans 0 0 0 16,405.64 16,035.70
Total Debt 0 4,500.00 0 16,405.64 16,035.70Total Liabilities 124,453.22 117,456.73 97,504.43 103,688.25 94,771.12
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Application Of Funds
Gross Block 96,463.86 90,019.55 80,501.56 71,553.78 61,355.61
Less: Accum. Depreciation 68,980.39 68,341.41 61,862.02 55,905.28 50,941.23
Net Block 27,483.47 21,678.14 18,639.54 15,648.50 10,414.38
Capital Work in Progress 14,415.37 73,258.12 65,299.77 56,073.25 52,923.19
Investments 9,173.05 5,216.24 5,182.80 5,772.03 5,090.32
Inventories 5,704.39 5,165.44 4,118.98 4,678.57 4,060.67
Sundry Debtors 6,863.72 6,194.82 3,994.68 3,058.64 4,083.80
Cash and Bank Balance 13,218.59 20,124.57 14,481.09 282.85 161.48
Total Current Assets 25,786.70 31,484.83 22,594.75 8,020.06 8,305.95
Loans and Advances 101,268.07 40,090.29 36,300.55 63,721.90 55,964.02
Fixed Deposits 0 0 0 17,948.18 18,934.74Total CA, Loans &Advances 127,054.77 71,575.12 58,895.30 89,690.14 83,204.71
Deffered Credit 0 0 0 0 0
Current Liabilities 30,575.81 30,715.22 28,763.69 27,244.53 26,854.11
Provisions 23,097.63 23,555.65 21,749.29 37,092.46 30,657.98
Total CL & Provisions 53,673.44 54,270.87 50,512.98 64,336.99 57,512.09Net Current Assets 73,381.33 17,304.25 8,382.32 25,353.15 25,692.62
Miscellaneous Expenses 0 0 0 841.32 650.61
Total Assets 124,453.22 117,456.75 97,504.43 103,688.25 94,771.12
Contingent Liabilities 35,810.89 27,810.71 20,465.03 39,178.54 36,024.57
Book Value (Rs) 145.47 132.03 113.97 408.08 368.12
8/13/2019 H13078_AFM
46/46
Oil and Natural Gas Corporation
Standalone Profit & Loss account
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
IncomeSales Turnover 83,005.33 76,515.09 68,338.92 60,470.18 64,342.28
Excise Duty 0 0 0 218.41 338.29
Net Sales 83,005.33 76,515.09 68,338.92 60,251.77 64,003.99
Other Income 5,436.74 7,593.53 3,406.85 3,615.96 4,085.59
Stock Adjustments 0 91.34 12.91 118.04 81.1
Total Income 88,442.07 84,199.96 71,758.68 63,985.77 68,170.68
Expenditure
Raw Materials 4,199.15 656.14 635.3 2,431.88 10,905.51
Power & Fuel Cost 334.96 157.86 142.57 260.38 270.79
Employee Cost 10,330.17 1,309.48 1,303.13 5,618.16 4,536.80Other Manufacturing Expenses 10,043.10 19,692.63 17,453.44 26,652.82 19,578.49
Selling and Admin Expenses 0 0 0 -13,243.69 -4,470.78
Miscellaneous Expenses 24,559.03 8,867.56 8,623.49 947.65 1,011.04
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 49,466.41 30,683.67 28,157.93 22,667.20 31,831.85
Operating Profit 33,538.92 45,922.76 40,193.90 37,702.61 32,253.24
PBDIT 38,975.66 53,516.29 43,600.75 41,318.57 36,338.83
Interest 27.64 34.83 25.11 11,276.89 8,485.40
PBDT 38,948.02 53,481.46 43,575.64 30,041.68 27,853.43
Depreciation 8,373.57 7,495.92 7,676.69 5,242.66 4,355.62
Other Written Off 0 9,333.44 8,248.97 0 0
Profit Before Tax 30,574.45 36,652.10 27,649.98 24,799.02 23,497.81
Extra-ordinary items -53.15 -9.55 -33.63 183.99 790.68
PBT (Post Extra-ord Items) 30,521.30 36,642.55 27,616.35 24,983.01 24,288.49
Tax 9,618.64 11,519.65 8,692.37 8,258.73 8,437.78
Reported Net Profit 20,925.70 25,122.92 18,924.00 16,767.56 16,126.32
Total Value Addition 45,267.25 30,027.53 27,522.63 20,235.33 20,926.34
Preference Dividend 0 0 0 0 0
Equity Dividend 8,127.72 8,341.61 7,486.05 7,058.28 6,844.39
Corporate Dividend Tax 1,301.16 1,328.62 1,215.65 1,161.56 1,163.20
Per share data (annualised)
Shares in issue (lakhs) 85,554.90 85,554.90 85,554.90 21,388.73 21,388.73
Earning Per Share (Rs) 24.46 29.36 22.12 78.39 75.4
