ONGC’s Q1FY20 standalone earnings fell 4% y-o-y to Rs 59 bn missing JEFe by 20% on higher exploration costs. Ebitda was also 7% lighter on lower sales volumes and higher opex but OVL did better leaving consolidated EPS 13% higher than standalone despite losses at MRPL. Earnings momentum may soften in 2HFY20 as realisations fall but with valuations undemanding at 6.4x FY20e P/E, we keep our Buy with a slightly lower Rs 180 PT as we also trim FY20-21e EPS by 2-4%.
Q1FY20: ONGC’s standalone Q1FY20 net fell 4% y-o-y (+46% q-o-q) to Rs 59.04 bn. Lower other income and higher interest, survey expenses (Rs 8.8 bn) & dry-well write-offs (Rs 14.5 bn) were reasons but Ebitda (Rs 146 bn) was also 7% lighter falling 7% y-o-y.
