Reliance Industries (RIL) has lost the tag of India’s highest profit-making company to Tata Consultancy Services (TCS) in the March 2020 quarter, due to the Pandemic! At Rs 8,049 crore, TCS’ reported profit after tax (PAT) during the January-March 2020 quarter was ahead of RIL’s reported PAT of Rs 6,348 crore during the same quarter. RIL reported a sharp 39 per cent year-on-year decline in net profit during the quarter, thanks to inventory losses due to a sharp fall in crude oil prices. In comparison, TCS’ net profit was down around one per cent on year-on-year during Q4FY20.
For nearly two decades now, RIL has been the most profitable company in the private sector. The Mukesh Ambani-controlled conglomerate, however, remains miles ahead of TCS in other financial parameters such as total revenue, operating profit, net worth, assets, and market capitalisation (m-cap).
This is the second time that the Tata group company beat RIL in the net profit league table on a quarterly basis. In December 2014 quarter, TCS net profit was marginally ahead of RIL’s. At current stock prices, RIL is valued at Rs 9.3 trillion against TCS’ m-cap of Rs 7.6 trillion.
[Courtesy: Business Standard]