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 in its 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.
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 crore. 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.
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 between FY10 and FY19. 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 trillion on the book, also has the highest gross debt of Rs 2.87 trillion 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.