RIL was also the most profitable company in the country with a net profit of more than double that of IOC in FY2019.
Business
Standard : Richest
Indian Mukesh
Ambani's oil-to-telecom conglomerate Reliance Industries has
toppled state-owned Indian Oil Corp (IOC) to become the country's
biggest company by revenue.
Reliance
in the 2018-19 fiscal year that ended March 31, reported a turnover
of Rs 6.23 trillion. In comparison, IOC posted a turnover of Rs 6.17
trillion for the fiscal, according to regulatory filings by the two
companies.
It
was also the most profitable company in the country with a net profit
of more than double that of IOC in FY2019.
Reliance
Industries, 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. IOC, on the other hand, ended the year with a net profit of Rs
17.274 crore.
IOC
till last year was the most profitable PSU but may have lost this
position to Oil and Natural Gas Corp (ONGC) in 2018-19. ONGC is yet
to declare its FY19 earnings but it had clocked a net profit of Rs
22,671 crore in the first nine months of the fiscal year.
Net
profit of IOC, which depends on oil refining, petrochemicals and gas
business for its revenue, had in 2018-19 declined by 23.6 per cent
over Rs 22,189.45 crore net profit it had earned in 2017-18.
Reliance,
on the other hand, posted a 13 per cent rise in profits over Rs
34,988 crore recorded in 2017-18.
ONGC
had a net profit of Rs 19,945.26 crore in 2017-18 fiscal, lagging
behind IOC.
With
this milestone, Reliance has achieved the numero uno position in
terms of all three parameters revenue, profit, and market
capitalisation.
With
strong refining margin and robust retail business, Reliance clocked a
44 per cent in revenue in FY19 over the previous year and posted a
compounded annual growth rate of over 14 per cent between FY10 and
FY19. In contrast, IOC turnover rose 20 per cent in FY19 and 6.3 per
cent during FY10 and FY19.
At
Tuesday's trading price of Rs 1,345, Reliance boasts of a market
capitalisation of Rs 8.52 lakh crore.
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 totaling Rs 92,700 crore.
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