​RIL has been displaced by this public sector giant as India’s most profitable company

Aug 9, 2023

By: Katya Naidu

Credit: BCCL

RIL’s fortunes altered

The first quarter of FY24 has changed the fortunes of many. Reliance Industries lost its status as India’s most profitable company.

Credit: IANS

What’s changed?

RIL’s Q1 net profit fell 11 percent to ₹16,011 crore, as revenues in its refining business fell by 18 percent. Its oil-to-chemicals business contributes to over 60 percent of its topline.

Credit: IANS

Oil on the slide

The oil and petrochemicals business has been difficult for most companies due to sharp price movements of the crude, eating into their business.

Credit: Pixabay

Banking on upswing

On other hand, India’s largest bank emerged as the most profitable company as its net profits almost tripled in Q1 to ₹18,536 crore.

Credit: BCCL

Betting on money

Most banks reported stellar growth like SBI, as provisions reduced and asset quality improved during the quarter.

Credit: Pixabay

The usual suspects

The recently merged India’s largest private sector bank HDFC Bank reported profits to the tune of ₹12,370 crore, which grew by 29 percent.

Credit: BCCL

RIL ranks high in value

Irrespective of their profits, the oil-to-retail conglomerate is much more valuable than India’s largest bank.

Credit: IANS

RIL is 3x of SBI

SBI has a marketcap of ₹5.08 lakh crore, while RIL is valued over 3x of its at ₹17.01 lakh crore. HDFC Bank is also valued at ₹12.4 lakh crore — much more than SBI, irrespective of profits.

Credit: IANS

Oil rules

Traditionally most valuable companies are from the oil & gas and banking sectors – with Indian Oil, BPCL, HPCL and ICICI Bank making it to the top 10 most profitable list —- with only one exception, TCS which is a tech major.

Credit: IANS

​A quick tour of ITC Hotels, now a standalone company after the demerger