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.