Indian Oil Corp (IOCNSE -0.75 %) has overtaken Oil and Natural Gas Corp (ONGCNSE -2.50 %) to become India’s most profitable state-owned company. IOC, which has for decades been India’s biggest company by turnover, posted a 70 per cent jump in net profit to Rs 19,106.40 crore in the financial year ended March 31, 2017.
This was more than the Rs 17,900 crore net profit ONGC posted in the 2016-17 fiscal, making IOC the most profitable PSU, according to earning statements of the companies. Billionaire Mukesh Ambani-led RelianceNSE 0.28 % Industries retained the crown of being India’s most profitable company for the third year in a row, posting a net Rs 29,901 crore in financial year 2016-17.
Tata Consultancy Services, India’s largest software services exporter, with a net profit of Rs 26,357 crore was the second most profitable company in the country. Natural gas is no more profitable business because cost of production is very very significantly higher than current gas prices. ONGC is the country’s biggest gas producer, accounting for some 80 per cent of the 70 million standard cubic meters per day current output.