- S Africa widens hunt for Zuma allies to India, China
- India best placed to leverage technology: PM
- DMK to convene 'all-party' meet on Cauvery issue
- Pak charges Rs 2.86L as route navigation charges on PM flights
- Mentally challenged person shot dead near J&K Air Force station
- FIR against Rotomac promoter for Rs 800 cr bank fraud: CBI
- PNB fraud fallout: CBI seals Brady House Branch in Mumbai
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 state-owned company.
IOC, which has for decades been India's biggest company by turnover, posted a 70 per cent jump in net profit to Rs 19,106.40 crore in the financial year ended March 31, 2017.
This was more than the Rs17,900 crore net profit ONGC posted in the 2016-17 fiscal, making IOC the most profitable PSU, according to earning statements of the companies.
Billionaire Mukesh Ambani-led Reliance Industries retained the crown of being India's most profitable company for the third year in a row, posting a net Rs 29,901 crore in financial year 2016-17.
Tata Consultancy Services, India's largest software services exporter, with a net profit of Rs26,357 crore was the second most profitable company in the country.
ONGC was long India's most profitable company but lost the crown to private sector Reliance and TCS a couple of years back. It has now been unseated as the most profitable PSU by IOC.
In the previous 2015-16 fiscal, IOC had a net profit of Rs11,242.23 crore as compared to ONGC's Rs16,140 crore.
While IOC Chairman B Ashok attributed the profit growth to higher refining margins, inventory gains and operational efficiencies, ONGC Chairman and Managing Director Dinesh K Sarraf said the company lost Rs3,000 crore in net profit due to government's natural gas pricing policy that has made the business economically unviable.
The BJP-led Government had in October 2014 evolved a new pricing formula using rates prevalent in gas surplus nations like the US, Canada and Russia to determine rates in a net importing country.
Prices have halved to $2.48 per million British thermal unit since the formula was implemented.
Sarraf said the company lost Rs5,010 crore in revenue on natural gas business from 35 per cent drop in gas prices in last one year.
"Our profit would have been about Rs3,000 crore higher if we got remunerative gas price," he said.
"Natural gas is no more profitable business because cost of production is very very significantly higher than current gas prices," he said.
Oil Minister Dharmendra Pradhan in a written reply to a question in Lok Sabha on March 20 had stated that the cost of production of natural gas in the prolific Krishna Godavari basin is between $4.99 per mmBtu and $7.30 per mmBtu.
The same for other basins is in the range of $3.80 per mmBtu to $6.59 per mmBtu, he had said, adding the production costs of companies vary from field to field depending upon size of the reservoir, location, logistics and availability of surface facilities.
ONGC is the country's biggest gas producer, accounting for some 80 per cent of the 70 million standard cubic meters per day current output.
- Tata Steel, JSW-Piramal JV bid for Bhushan Steel, resolution begins 20 Feb 2018 | PNS
- Telecom relief package likely in March: Govt 20 Feb 2018 | PNS
- Regulatory changes may delay KG block output: ONGC 20 Feb 2018 | PNS
- Business Corner 20 Feb 2018 | PNS
- SFIO to probe Fortis, Religare for irregularities 20 Feb 2018 | PNS
- PNB tanks over 7% 20 Feb 2018 | PNS
- PNB scam impact: Bank stocks tumble; Sensex dives 236 pts 20 Feb 2018 | PNS
- PNB assures will honour bonafide commitments 20 Feb 2018 | PNS
- United India Insurance's net profit at `306.27 cr during April-Dec last year 19 Feb 2018 | PNS
- FPIs' net outflow from equities hits $1 bn so far in February 19 Feb 2018 | PTI
Sunday EditionView All
18 Feb 2018 | Gwynne Dyer
Now that Jacob Zuma has finally exited, the African National Congress, which has fallen a long way from its glory days, has one last chance to rebuild its reputation before next year’s election. Whether the ANC is the best bet for South Africans is a different question altogether As a passer-by in the upscale Johannesburg suburb of Saxonwold observed, the South African Police would never have raided the enormous, high-walled compound...
STATE EDITIONSView All
20 Feb 2018 | Staff Reporter | Bhopal
Patidar Anamat Andolan Samiti (PAAS) leader Hardik Patel on Monday said that the fight in Madhya Pradesh is not between BJP and Congress but the ruling party against the citizens. Before participating in the Samajik Chetna rally, talking to media persons here on Monday, Patel said, “Chief Minister in Madhya Pradesh is called Mama (uncle) but we don’t want a Shakuni Mama...