INSUBCONTINENT EXCLUSIVE:
New Delhi: ONGC, India's top oil and gas producer, has toppled Indian Oil Corp (IOC) to regain crown of being the country's most
profitable public sector company.
According to earnings statements of the listed companies, Oil and Natural Gas Corp (ONGC) reported a 34
per cent jump its in 2018-19 fiscal net profit to Rs 26,716 crore.
In comparison, IOC registered a net profit of Rs 17,274 crore for the
fiscal year ended March 31, 2019.
ONGC, in the previous two financial years, had lost the most profitable PSU tag to IOC.
With its refining
margins under pressure due to falling oil prices, IOC had also lost the title of being India's largest company by turnover tag to
billionaire Mukesh Ambani-led Reliance Industries in FY19.
IOC had in the previous 2017-18 fiscal posted a record net profit of Rs 21,346
That year ONGC had a net profit of Rs 19,945 crore.
Reliance has been India's most profitable company for the fourth year in a row
RIL, which was about half the size of IOC till about a decade back but its bet on burgeoning consumer base and foray into new businesses
such as telecom, retail, and digital services vastly expanded its business, clocked a net profit of Rs 39,588 crore in FY19.
Reliance in the
2018-19 reported a turnover of Rs 6.23 lakh crore
In comparison, IOC posted a turnover of Rs 6.17 lakh crore for the fiscal, according to regulatory filings by the two companies.
It is now
India's biggest firm in terms of revenue, profit and market capitalisation.
With strong refining margin and robust retail business,
Reliance clocked a 44 per cent rise in revenue in FY19 over the previous year and posted a compounded annual growth rate of over 14 per cent
In contrast, IOC turnover rose 20 per cent in FY19 and 6.3 per cent during FY10 and FY19.
Interestingly, Reliance which boasts of the
highest cash reserves of Rs 1.33 lakh crore on the book, also has the highest gross debt of Rs 2.87 lakh crore at the end of March 2019.
In
contrast, IOC had short and long-term loans totalling Rs 92,700 crore
ONGC had a debt of about Rs 20,000 crore.
