List of Most Profitable Companies in India (FY19-20): How often do you have a look at the profitability of the company before you invest? You’ll often come across rankings of the largest companies in India. But how many of these aren’t overvalued and actually generate sufficient profits for returns.
In this article, we take a look at the most profitable companies in India by comparing the Net Profit for the financial year ending March 2020.
Top 10 Most Profitable Companies in India
Here are the companies which generated the highest net profit for the financial year (FY) ending March 20. Please note that all the net profits are for the Standalone financial statements.
Tata Consultancy Services (TCS) tops the list for the most profitable company in India. The Indian IT giant earned Rs. 33,260 crores for the financial year ending March 20.
TCS is a subsidiary of the Tata Group and specializes in information technology. Thanks to its profitability for several years now TCS also generated more than 70% of its parent company’s dividends for the years 2014-17.
The company also currently holds the record for the world’s largest IT company with a market capitalisation of $169.2 billion. This also makes it the most valuable IT services brand worldwide.
The company earns most of its revenues from software development and maintenance followed by IT enterprise consulting. Their other revenue streams are generated from banking, financial services, and the insurance sector. This make-up almost half of their revenues.
Although the company is based in India TCS makes most of its revenue from its US-based clients. For the year 2020, the company brought in around Rs. 82,000 crores from the US or 10.8 billion U.S. dollars. As of 2016 TCS held a 3% market share in the North American Market.
Reliance Industries Limited (RIL) bags the spot for the second most profitable company in India for the year 2019-20 after earning Rs. 30,903 crores.
The company enjoyed many years with ‘India’s Most Profitable Company’ title but was finally dethroned by TCS in 2019-20.
The company is a conglomerate with businesses engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. RIL however is the largest publicly traded company in India by market capitalisation.
Housing Development Finance Corporation Limited (HDFC Ltd.) is one of the most profitable companies in India. They earned Rs. 17,769 crores during the 2019-20 financial year. The company was set up in 1977 with the objective of encouraging homeownership by providing long-term finance.
Today, HDFC is a parent company to various companies engaged in the financial services sector. It is also a major housing finance provider in India.
The company has an interest in banking, life and general insurance, asset management, venture capital, realty, education, deposits, and education loans.
Its subsidiaries include HDFC Bank Limited, HDFC Standard Life Insurance Company Ltd., HDFC ERGO General Insurance Company Ltd., HDFC Asset Management Company Ltd., GRUH Finance, HDFC Venture Capital Ltd., HDFC RED, and Credila Financial Services Private Ltd.
Infosys Ltd. is one of the most profitable companies in India having generated profits of Rs. 15,543 crores for the year 2019-20. The company is also the second-largest Indian IT company after Tata Consultancy Services (TCS).
Despite having its core business in the IT industry the company has interests in various other industries. These include Aerospace and Defence, Agriculture, Consumer Packaged Goods, Financial Services, Healthcare, Industrial Manufacturing, Insurance, Life Science, Logistics, Mining, Oil and Gas, Retail, etc.
ITC was set up in 1910 as Imperial Tobacco Company of India Limited and comes with a rich history.
Today the company has its presence across industries like Cigarettes, FMCG, Hotels, Packaging, Paperboards & Specialty Papers, and Agribusiness. The company however still earns most of its revenue from the Cigarette Industry.
6. HDFC Bank
HDFC Bank is an Indian banking and financial services company. It is also one of the most profitable companies in India. The company earned profits of Rs. 14,114.93 crores for the year 2019-20.
The company is India’s largest private sector bank by assets also the largest banking company by market capitalization.
The company entered the list after it made Rs. 13,444.54 crores despite suffering a 50% fall in its profits. ONGC produces around 70% of India’s crude oil and around 84% of its natural gas. The company is also India’s largest profit-making PSU and 7th on the list of most profitable companies in India.
ONGC also owns 51.11% shares in Hindustan Petroleum Corporation Limited (HPCL) another Indian state-owned oil and natural gas company.
8. Coal India
Coal India is also the largest coal-producing company in the world. They currently have aimed at achieving an output of 1 billion tonnes by 2023-24. It currently contributes around 82% of the total coal production in India.
Its subsidiaries include Bharat Coking Coal Ltd. (BCCL), Central Coalfields Ltd. (CCL), Eastern Coalfields Ltd. (ECL), Mahanadi Coalfields Ltd. (MCL), Northern Coalfields Ltd. (NCL), South Eastern Coalfields Ltd. (SECL), Western Coalfields Ltd. (WCL), Central Mine Planning and Design Institute (CMPDI), North Eastern Coalfields, Coal, India Africana Limitada, and Dankuni Coal Complex.
Sadly the company not only ranks 8th on the list of most profitable companies but also on the list of top 20 firms responsible for a third of all global carbon emissions.
The company is responsible for around 50% of the total power generated in India through its transmission network. The company is also involved in the telecom business through its company POWERTEL.
National Thermal Power Corporation Limited (NTPC) is engaged in the business of generation of electricity and its allied activities. The company earned a profit of Rs. 10,112.81 crores for the year 2019-20.
NTPC is yet another government enterprise to make it into this list. The company generates and then sells electricity to state-owned power distribution companies and State Electricity Boards.
Currently, NTPC is the largest power company in India. Over the years they also have ventured into oil and gas exploration and coal mining activities.
The profits from these firms are enough to make any accountant drool. That’s all for this post. Here we listed the most profitable Indian companies and the most profitable businesses in India which are the largest in terms of their net profit.
|S.No.||Company Name||Net Profit in FY19-20 (₹ Crore)|
|3||H D F C||17,769|
Let us know what you think about the profits generated and how important they are when investing. You would also like to know who are the top 10 companies in India by market capitalization. We are almost nearing the end of the Financial year 2020-21. Which company do you think will take the top spot for most profitable this year?
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.