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IOC is India's most profitable PSU

Last Updated 28 May 2017, 18:53 IST
The Indian Oil Corporation (IOC) has overtaken the Oil and Natural Gas Corporation (ONGC) to become the country’s most profitable state-owned company.

IOC, which has for decades been India’s biggest company by turnover, posted a 70% 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.

Reliance 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, while Tata Consultancy Services, India’s largest software services exporter, with a net profit of Rs 26,357 crore, was the second most profitable company.

ONGC was long India’s most profitable company but lost the crown to private sector Reliance and TCS a couple of years back. It has now been unseated as the most profitable PSU by IOC.

In the previous 2015-16 fiscal, IOC had a net profit of Rs 11,242.23 crore as compared to ONGC’s Rs 16,140 crore.

While IOC Chairman B Ashok attributed the profit growth to higher refining margins, inventory gains and operational efficiencies, ONGC Chairman and Managing Director Dinesh K Sarraf said the company lost Rs 3,000 crore in net profit due to the government’s natural gas pricing policy that has made the business economically unviable.
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(Published 28 May 2017, 17:33 IST)

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