Indian Oil Corp (IOC) has overtaken Oil and Natural Gas Corp (ONGC) to become India’s most profitable public sector undertaking (PSU).
For financial year ended March 31, 2017, IOC posted a net profit of Rs 19,106.40 crore, which marks a 70% jump from previous year. This net profit figure is much higher than ONGC’s Rs 17,900 crore for financial year ended March 31, 2017.
Profit Growth: IOC Vs. ONGC
As stated by IOC Chairman B Ashok, company’s profit growth has been achieved on account of higher refining margins, inventory gains and operational efficiencies.
- ONGC Chairman and Managing Director Dinesh K Sarraf has mentioned that company lost Rs 3,000 crore in net profit owing to Central Govt’s new pricing formula for natural gas. The new formula caused nearly 50% drop in natural gas prices.
- In October 2014, Central Govt. evolved a new pricing formula using rates prevalent in US, Canada and Russia. However, it is to be noted that these are gas surplus nations, whereas India is a net importing nation of natural gas.
About Indian Oil Corporation (IOC):
IOC was formed in year 1959.Its headquarters is located in New Delhi.
- B Ashok is the current Chairman of IOC.
- IOC also has subsidiaries in UAE, Mauritius and Sri Lanka.
- In terms of turnover, IOC has been India’s biggest company since many decades.
India’s Most Profitable Company – Reliance Industries Ltd.
For financial year 2016-17, Mukesh Ambani-led Reliance Industries ltd. retained the crown of being India’s most profitable company by posting a net profit of Rs. 29,901 crore. Reliance Industries ltd. has held up this distinction for third year in a row.
- Reliance Industries Ltd. is followed by India’s largest software services exporter, Tata Consultancy Services, which posted a net profit of Rs 26,357 crore for FY 2016-17.