{"id":287862,"date":"2019-08-20T06:27:34","date_gmt":"2019-08-20T06:27:34","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=287862"},"modified":"2019-08-20T06:27:34","modified_gmt":"2019-08-20T06:27:34","slug":"ongc-rating-buy-higher-costs-impacted-q1-numbers","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/ongc-rating-buy-higher-costs-impacted-q1-numbers\/","title":{"rendered":"ONGC Rating: Buy; Higher costs impacted Q1 numbers"},"content":{"rendered":"<p>ONGC\u2019s 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%.<\/p>\n<p>Q1FY20: ONGC\u2019s 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) &amp; dry-well write-offs (Rs 14.5 bn) were reasons but Ebitda (Rs 146 bn) was also 7% lighter falling 7% y-o-y.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ONGC\u2019s 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\u2019s standalone Q1FY20 net fell 4% y-o-y (+46% q-o-q) to Rs 59.04 bn. Lower other income and [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-287862","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/287862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=287862"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/287862\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=287862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=287862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=287862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}