RIL pips Indian Oil Corporation, becomes India's biggest revenue spinner

Last Updated: Tue, May 21, 2019 18:58 hrs
Mukesh Ambani (AP photo)

Mukesh Ambani's Reliance Industries Limited is officially India's biggest revenue generating company. RIL with a clutch of interests from Oil to telecom and even Retail beat Indian Oil Corporation to earn the crown of India's biggest revenue generators on Tuesday.

For the fiscal year ending 2019, RIL posted a total revnue of Rs 6.23 lakh crores. IOCL in comparison posted a total revenue of Rs 6.17 lakh crores. Numbers provided by regulatory filings showed the data.

RIL has also bagged the distinction of being more profitable than IOCL in FY19. Oil & Natural Gas Company Limited is yet to report its results.

The journey of RIL has been quite the opposite to that of IOCL's. RIL, about ten years ago was reportedly half the size of IOCL. The foray into newer businesses such as telecom, retail and the unabashed persistence on digital services helped RIL clock a profit of Rs 39,588 crores in FY 19. RIL's profits grew by 13 per from Rs 34,988 crores recorded in 2017-18.

Indian Oil on the other hand posted a net profit of Rs 17,274 crores. Net profit of IOC, which depends on oil refining, petrochemicals and gas business for its revenue, declined in 2018-19 by 23.6 per cent over Rs 22,189.45 crore net profit it had earned in 2017-18.

ONGC may clock profits better than IOCL. ONGC's profits for the first nine months of FY19 were reported at Rs 22,671 crore.

With this milestone, Reliance has achieved the numero uno position in terms of all three parameters revenue, profit, and market capitalisation.

RIL's trading price on Tuesday's session on the Bombay Stock Exchange was Rs 1,345. At that price, RIL's market capitalisation was Rs 8.52 lakh crores. The scrip ended the session on Tuesday at a gain of 14.25 or 1.08% to settle at Rs 1339.75 per share.

RIL's strong refining margin and robust retail business helped it clock a 44% growth in revenue over the previous year. The company also posted a compounded annual growth rate of over 14 per cent between FY10 and FY19. In contrast, IOC turnover rose 20 per cent in FY19 and 6.3 per cent during FY10 and FY19.

Interestingly, Reliance which boasts of the highest cash reserves of Rs 1.33 lakh crore on the book, also accounts for highest gross debt of Rs 2.87 lakh crore. This reported for the end of March 2019. In a stark contrast, IOCL had short and long-term loans totaling Rs 92,700 crore.