TCS Beats Reliance After 6 Yrs To Become India’s Most Profitable Firm! How This Happened?
After a long reign of nearly two decades, Reliance Industries has lost its title of India’s highest profit-making company to Tata Consultancy Services.
News is that Tata Consultancy Services has reported a profit after tax that is more than that of RIL, making the former the highest profitable company in the March 2020 quarter.
Find out how TCS managed to steal the title from RIL right here!
Reliance Industries Loses Its Tag Of Most Profitable Company To Tata Consultancy Services
Reliance Industries has been at the top of the list in India for about two decades now. But not anymore! The March 2020 quarter has seen a rise in the profit of Tata Consultancy Services and the credit for this goes to the Coronavirus pandemic.
TCS has reported a profit after tax (PAT) of Rs 8,049 crore in the January-March 2020 quarter, which is reportedly more than that of Reliance’s PAT of Rs 6,348 crore in the same duration. As per reports, RIL has faced a huge 39 percent year-on-year decline in net profit during this quarter, due to RIL’s inventory losses caused by the huge decline in the prices of crude oil.
Whereas, TCS reported a net profit decline of around 1% on year-on-year during Q4FY20.
Despite this, RIL is still way ahead of TCS in other financial parameters such as total revenue, operating profit, net worth, assets, and market capitalization (m-cap).
TCS Beats RIL To Be Most Profitable For The Second Time Now
As per reports, this is the second time that TCS has beat RIL in the net profit category on a quarterly basis. It was in January 2015, TCS managed to end the RIL’s run as the most-profitable firm after a whopping 23 years.
RIL registered an inventory loss of Rs. 4245 crore net of taxes in the same quarter thanks to a loss in the oil prices along with a never seen before demand destruction due to the coronavirus outbreak.
However, RIL is the country’s most profitable company on a yearly basis with the net profit of Rs 39,354 crore in FY20, whereas that of TCS was Rs 32,340 crore.