New Delhi: 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 31 March, reported a turnover of ?6.23 lakh crore. In comparison, IOC posted a turnover of ?6.17 lakh crore 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, 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 ?39,588 crore in FY19. IOC, on the other hand, ended the year with a net profit of ?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 ?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% over ?22,189.45 crore net profit it had earned in 2017-18.
Reliance, on the other hand, posted a 13% rise in profits over ?34,988 crore recorded in 2017-18.
ONGC had a net profit of ?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% in revenue in FY19 over the previous year and posted a compounded annual growth rate of over 14% between FY10 and FY19. In contrast, IOC turnover rose 20% in FY19 and 6.3% during FY10 and FY19.
At Tuesday’s trading price of ?1,345, Reliance boasts of a market capitalisation of ?8.52 lakh crore.
Interestingly, Reliance which boasts of the highest cash reserves of ?1.33 lakh crore on the book, also has the highest gross debt of ?2.87 lakh crore at the end of March 2019.
In contrast, IOC had short and long-term loans totaling ?92,700 crore.
This story has been published from a wire agency feed without modifications to the text.