Reliance Industries' record profit challenges ONGC's top rank

NEW DELHI: Billionaire Mukesh Ambani-led Reliance Industries today came close to challenging PSU giant ONGC's position as the country's most profitable company, with a record net profit of Rs 20,211 crore for the fiscal 2010-11.

RIL's consolidated net profit for the fiscal ended March 31, 2011, grew by over 27 per cent to Rs 20,211 crore.

The company had recorded profit of Rs 15,898 crore in the previous fiscal 2009-10, making it second most profitable company after ONGC.

Oil and Natural Gas Corp (ONGC), the nation's largest oil and gas explorer, had recorded net profit of Rs 16,767.55 crore in 2009-10. The PSU major is yet to announce its figures for the fiscal 2010-11.

In the first nine months of 2010-11 fiscal, ONGC has reported a net profit of Rs 16,133.13 crore.

Analysts expect that the full-year profits of the two companies could be very close to each other and it would be interesting to see whose figures are higher, although not by any big margin.

They said that RIL's figures for the last quarter would have been much higher, but for a decline in the production from its main gas field KG-D6.

Commenting on the results, RIL Chairman and MD Mukesh Ambani said: "Reliance had a record year with strong financial and operating performance. Global economic growth, emerging markets demand and tightness in the markets led to recovery in refining margins and record petrochemical earnings."

"We are fully geared to participate in India's growth and continued global recovery in the coming years. Our committed investments in core business and new initiatives are expected to result in sustained earnings growth," he added.

In the league of five most profitable companies, ONGC and RIL are followed by Indian Oil (Rs 10,220 crore), Bharti Airtel (Rs 9,426 crore) and SBI (Rs 9,166 crore), based on their comparable latest available fiscal year results.

In terms of turnover, RIL is ranked second after Indian Oil and is followed by BPCL, HPCL, SBI and ONGC.