ONGC pips IOCL as profitable PSU, but RIL remains most profitable

Last Updated: Mon, Jun 03, 2019 18:25 hrs

Oil and Natural Gas Corporation has regained the crown of India's most profitable PSU of the country. ONGC had lost the title two years ago to IOCL.

Annual results of ONGC for the fiscal year ending March 31 2019 says that the company posted a net profit of Rs 26,716 crores. The consolidated net profit increased for fiscal year 2018-19 soared to Rs 33,887 crores, up by 30 per cent from Rs 26,068 crore from the previous year.

With that, ONGC has regained the 'most profitable PSU crown' back from Indian Oil Corporation Limited (IOCL) that registered a net profit of Rs 17,274 crores in FY19.

RIL, meanwhile maintained the tag of India's most profitable company for the fourth year in row. The Mukesh Ambani led Reliance Industries which has interests from telecom to retail to toy-chain posted a net profit of Rs 39,588 crores for FY19.

ONGC did not have a great fourth quarter results, but it managed to unsettle IOCL. For the three months ending March 31, 2019, ONGC's net profit was 31.6 percent lower than that posted in the same corresponding period last year. March quarter numbers suggested a major blip for the company.

However, the company's revenue from operations increased to Rs 26,759 crore in the fourth quarter, up by 12 per cent from Rs 23,970 crore posted a year ago during the same corresponding quarter.

A major difference among the two PSU companies is also the way the factor of debts. While IOCL's short and long-term loans totalled Rs 92,700 crores, ONGC reported a debt of approximately Rs 20,000 crore.

Post announcement of results, ONGC also offered a dividend of 15%. A company statement reads, "ONGC Board has recommended final dividend of 15%. The Company had earlier declared interim dividends of 125% during the year. Thus, the total dividend for FY’19 has been 140% as against 132% in the last year. The total dividend payout for FY’19 would be Rs 8,806 crore (excluding Dividend Distribution Tax),"

To read more about how RIL pipped IOCL to maintain the status of India's biggest revenue spinner, click here.

As on end of trading hours on Monday, shares of IOCL were trading at Rs 169.15, of ONGC at Rs 172.30, and that of Reliance Industries at Rs 1358.30 per share.