IOC overtakes ONGC to become India’s most profitable PSU

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

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.

Exit mobile version