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HomeEconomyBusinessIOC becomes most profitable PSU amid soaring petrol and diesel rates

IOC becomes most profitable PSU amid soaring petrol and diesel rates

IOC, which has for decades been India's biggest company by turnover, last week posted a record net profit of Rs 21,346 crore in the fiscal year ended 31 March 2018 (FY 2017-18), up 12% from Rs 19,106 crore in the last fiscal

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New Delhi:  Fuel retailer IOC has for the second year in a row beaten to become India’s most profitable state-owned company, raising questions over calls for the explorer to subsidise retailers amid soaring petrol and diesel rates.
While billionaire Mukesh Ambani-led Reliance Industries retained the crown of being India’s most profitable company for the third year in a row, posting highest ever net profit of Rs 36,075 crore.

 

IOC, which has for decades been India’s biggest company by turnover, last week posted a record net profit of Rs 21,346 crore in the fiscal year ended 31 March 2018 (FY 2017-18), up 12% from Rs 19,106 crore in the last fiscal.

Oil and Natural Gas Corp (ONGC) yesterday reported its FY18 numbers – 11.4% rise in net profit to Rs 19,945 crore.

Tata Consultancy Services, India’s largest software services exporter, with a net profit of Rs 25,880 crore was the second most profitable company in the country.

was for long India’s most profitable company but lost the crown to private sector Reliance and TCS three years back. In fact, its profit was higher than the combined net profit of the three State-owned fuel retailers – IOC, Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) but now it is behind IOC.

For 2017-18, HPCL last week reported its highest ever net profit of Rs 6,357 crore on a turnover of Rs 2.43 lakh crore. BPCL earlier this week reported a net profit of Rs 7,919 crore for the fiscal.

The sustained profitability of the refining and marketing companies has led to some questioning the rationale of asking to subsidise fuel that IOC, BPCL and HPCL sell.

“Look at their profits. They don’t need any subsidy support,” said a senior official. “We are in the capital-intensive business of oil and gas exploration and production which has to be necessarily funded through internal accruals. Unlike refiners, we cannot get loans for risk E&P business,” he said.

is investing Rs 30,000 crore to Rs 35,000 crore annually, which cannot be sustained if it is again asked to subsidise fuel, an official said.

Upstream oil producers, and Oil India Ltd had until June 2015 provided for up to 40% of the annual fuel subsidy bill.

This they did this by way of providing discounts on crude sold to downstream refining and marketing companies, IOC, BPCL, and HPCL. This discount helped the retailers make good a part of the losses they incurred on selling petrol and diesel below cost.

The of upstream producers again subsidising fuel has been mooted after petrol and diesel earlier this week hit a record high of Rs 78.43 per litre and Rs 69.31 respectively. Rates have since marginally cooled but the threat still remains.

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#SundayEYE | An award-winning animated short film, Kandittund!, presents a slice-of-life glimpse into characters who populate the afterlife in Malayalam folklore

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भाजपा के लोकप्रिय विधायक व मुख्य सचेतक श्री @biranchi36 जी के नेतृत्व में भाजपा के कार्यकर्ताओं ने आत्मीय स्वागत किया।

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