Financial analysis for inter and intra firm comparison on Energy Minerals on ONGC and RIL SWOT Analysis of ONGC and Reliance Limited Balance Sheet, P&L

2. SWOT
ANALYSIS OF
ONGC LTD.
Strengths
-Brand Equity
-Focus on Sustainability
-Technology
-Strong dealer community
-Strong advertising and branding
-Owned by Govt of India
Weaknesses
-Being a government
organization, slow bureaucratic
decisions can reduce efficiency
-Intense competition
-Degrowth in Revenue and
Opportunities
-Increasing fuel/oil prices
-Increasing natural gas market
-ONGC can increase business
more oil well discoveries
-Expand global export market
and have international tie-ups
Threats
-Government regulations
-High competition form Indian
as well as global oil companies
-Hybrid and electric cars in the
market can reduce fuel
consumption
-Fluctuating crude oil prices

3. SWOT
ANALYSIS
OF
RELIANCE
INDUSTRIE
S LTD.
Strengths
-Strong brand name of Reliance
Industries
-Excellent financial position and strong
profitability
-One of the few Indian companies to
featured in Forbes
-Business spread across petrol, energy,
retail, telecom etc
-Strong advertising and marketing
-Recognized through several awards
-Strong focus towards holistic growth
and also involvement in CSR activities
Weaknesses
-Reliance Industries and ONGC had
issues regarding the Krishna
Godavari basin exploration
-Intense competition means limited
market share growth
Opportunities
-Growing demand for petroleum
products is a huge opportunity for
Reliance Industries
-Buyout of competition to
strengthen its position
-Increasing number of industries
cars in India is a huge opportunity
and potential for growth
-Tie-ups with global oil companies
can boost business for Reliance
Industries
Threats
-Government regulations and strict
guidelines can disrupt operations
-High Competition can reduce
Reliance Industries' market share
-Environmental laws and NGOs
oil exploration can affect business
-Economic instability and recession
can decline margins and fuel prices

4. 18
11.23
7
8.66
0
2
4
6
8
10
12
14
16
18
20
Days' inventory Inventory turnover
ONGC RIL
5.00%
6.50%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
ONGC RIL
Dividend yield
32.41
34.67
Asset turnover
ONGC RIL

5. 5.00%
53.81%
6.50%
12.47%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
Dividend yield
Dividend payout
Tests of Dividend Policy
RIL ONGC
0.69
0.45
0.51
0.54
0.41
0.64
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Current ratio Acid-test (Quick ratio) Debt/equity ratio
ONGC RIL

6. Highlights ONGC (2020) RELIANCE(2020)
Basic EPS Financial Ratio 10.69 48.75
Net Profit Margin(%) Margin Ratio 13.98 9.19
Return on Net worth / Equity
(%) Return Ratio 6.91 7.27
Current Ratio
Liquidity Ratio
0.67 0.54
Quick Ratio 0.45 0.41
Inventory Turnover (Times) Turnover Ratio 11.23 8.66
Financial Highlights :
Key point for P&L Analysis:

7. 0
10
20
30
40
50
Basic EPS
ONGC (2020) RELIANCE(2020)
0 2 4 6 8 10 12 14 16
Net Profit Margin(%)
Return on equity / Networth(%)
RELIANCE(2020) ONGC (2020)
6.7
6.8
6.9
7
7.1
7.2
7.3
Return on equity / Networth(%)
ONGC (2020) RELIANCE(2020)
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
ONGC (2020) RELIANCE(2020)
Chart Title
Current Ratio Liquidity Ratio Quick Ratio
56%
44%
Inventory Turnover Ratio
ONGC (2020) RELIANCE(2020)

8. Asset turnover
2019 2020
85.00
78.74
0
1
2
3
4
5
6
7
8
9
10
2019 2020
Return on Assets
0
2
4
6
8
10
12
14
16
2019 2020
Inventory Turnover Ratio
8.83
14.14
4.53
11.23

9. 0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Current Ratio Quick Ratio Debt/Equity Ratio
2019 2020
0 10 20 30 40 50 60
Dividend Payout ratio
Dividend yeild
2020 2019
5
7
53.80
35.91
0.44
0.61 0.67
0.5
0.47
0.45

11. RATIOS Reliance
Industries Limited
Formula Units
RIL 2019-2020 RIL 2018-2019
Percent
change
Calculation Values Calculation Values
Overall Performance measures
Price/Earnings ratio
Market price per share Times 1100
19.84
1400
25.23 -21.39%
Earnings per share 55.45 55.48
Return on assets
Net Income+Interest (1-Tax
rate)
Percent 44,197
4.56%
49,125
6.33% -27.97%
Total assets 9,68,912 7,75,745
Return on invested
capital
Net Income+Interest (1-Tax
rate)
Percent 44,197
6.71%
49,125
8.56% -21.64%
Long term liabilities+Equity 6,58,729 5,73,724
Return on
shareholder's equity
Net Income Percent 40,316
10.73%
47,367
14.59% -26.46%
Shareholder's equity 3,75,734 3,24,644
All values are in ₹ crore unless states otherwise

12. RATIOS Reliance
Industries Limited
Formula Units
RIL 2019-2020 RIL 2018-2019
Percent
change
Calculation Values Calculation Values
Profitability measures
Earnings per share
Net income Rs 40,316
54.24
47,367
57.3511 -5.42%
No. of shares outstanding 74,32,768 82,59,125
Tests of investment utilization/management effectiveness
Asset turnover
Sales revenue Times 3,62,869
0.3745
4,00,139
0.5158 -27.39%
Total assets 9,68,912 7,75,745
Current ratio
Current assets Ratio 1,66,597
0.5371
1,52,864
0.7567 -29.02%
Current liabilities 3,10,183 2,02,021
Tests of financial condition
Debt/equity ratio
Total debt (Long term debt) Percent 278044
0.74
240236
0.74 0.05%
Shareholder's equity 375734 324644
All values are in ₹ crore unless states otherwise

15. THANK YOU