Top 10 Most Profitable Companies In India

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TOP 10 MOST PROFITABLE COMPANIES IN INDIA
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Table of Contents

• L IST OF TOP 10 MOST PROFITABLE COMPANIES IN
  INDIA
• RELIANCE INDUSTRIES LTD TATA STEEL LTD
• TATA CONSULTANCY SERVICES LTD HDFC BANK LTD
• STATE BANK OF INDIA ICICI BANK
• INDIAN OIL
• CORPORATION LTD VEDANTA LTD
• INFOSYS LTD ITC LTD

How to determine Profitability? Definitions of
Profitability Ratios
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How to determine Profitability?
The profitability of a business or company is its
ability to generate revenue or profits higher
than its expenses. It is measured using the
profitability ratios like gross profit margin,
net profit margin, EBITDA, etc. These ratios help
investors and analysts to analyze the company and
measure its ability to generate revenue to cover
its operational costs, create value by increasing
its assets, and analyze its capacity for
expansion in the future. A higher profitability
ratio indicates that the company is performing
well. These ratios are also used for comparing
the performance of companies against each other.
Analysts and investors use profitability ratios
to determine whether or not to invest in the
company and to estimate its growth in the
future. Profitability Ratios of a company can be
of two types Margin Ratios and Return
Ratios. Get the details of 10 Most Profitable
Companies in India
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Definitions of Profitability Ratios
Margin ratios These ratios compare sales to
profits at various degrees of measurement. It
includes Gross Profit Margin, Net Profit Margin,
EBIDTA Margin, etc. Return Ratios These ratios
measure the returns generated. It includes Return
on Assets, Return on Equity, Return on Invested
Capital, etc. Net Profit Margin It is the
earnin s generated after all the expenses and
taxes have been paid. It is the ratio of the net
profit to sales. Net profit is the prof t earned
after deducting the operational costs,
depreciation, and dividend from the gross profit.
A higher ratio/margin indicates that the company
is earning enough to cover all its expenses,
payouts to the shareholders, and reinvest for
expansion and growth. Return on Capital
Employed ROCE is used to analyze the
profitability of the company in terms of capital
employed. It is calculated as a ratio of EBIT to
the capital employed. EBIT indicates the earnings
of the company before deducting interest and
taxes. Capital employed is calculated by
subtracting the current liabilities from total
assets. This encompasses shareholders equity and
long-term debts. We will take these factors into
consideration to determine he most profitable
companies.
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List of Top 10 Most Profitable Companies in India
The following table lists the most profitable
companies in India in 2022
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Top 10 Most Profitable Companies in India
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Reliance Industries Ltd.
Reliance Industries Ltd. is Indias largest
private sector enterprise, that has diversified
businesses, mainly in the following segments
energy, natural gas, petrochemicals, textiles,
retail, mass media, telecommunications, and Green
energy. It is a part of the Energy Sector and
operates in the Oil, Gas and Consumable Fuels
Industry. Reliance Industries is one of the most
profitable companies in India. It is the largest
publicly traded company on the stock exchange by
market capitalization (?16,25,056) and the
largest company by revenue and the most
profitable companies in India. Reliance
registered a sales growth of 48 per cent.
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Tata Steel Ltd.
Tata Steel Ltd. is an Indian multinational steel
company, part of the Tata Group. It is a part of
Metals Ferrous Sector and operates in the Steel
Integrated Industry. It was formerly known as
Tata Iron and Steel Company Ltd. (TISCO). It is
one of the largest steel producers in the world
with an annual crude steel capacity of 34 million
tonnes. It has a market capitalization of
?1,07,972. Its sales grew by 57 per cent this
year.
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Tata Consultancy Services Ltd.
Tata Consultancy Services Ltd. is an Indian
multinational information technology (IT)
services and consulting company, part of the Tata
Group. It is a part of the IT Software Sector and
operates in the IT Consulting and Software
Industry. Its services portfolio consists of IT
and assurance services, business process
services, business intelligence and performance
management, connected marketing solutions,
mobility products and services, cloud services,
and platform solutions. It serves healthcare,
insurance, telecom, retail, and other industries.
It has a market capitalization of ?10,95,739
Crore. It has registered a sales growth of 17
this year.
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HDFC Bank Ltd.
HDFC Bank Ltd. is a Banking and Financial
Services company. It is a Private Sector Bank
operating in Retail Banking, Treasury, Wholesale
Banking, Other Banking Business, and Unallocated
segments. It is the largest private sector bank
by assets and holds the highest weightage in the
Banknifty Index. HDFC Bank has been focusing on
rural areas to drive its next leg of growth.
Furthermore, as it will absorb HDFC in the next
year, its profitability will increase. It is the
third largest company by market capitalization
(?7,56,557 Crore).
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State Bank of India
State Bank of India is Indias biggest public
sector bank. It operates in multiple segments.
The Corporate/Wholesale Bankin segment includes
lending activities of the commercial clients
group, corporate accounts group, and stressed
assets resolutio group. The Treasury segment
includes the entire investment portfolio and
trading in derivative contracts and foreig
exchange contracts. The Retail Banking segment
focuses on personal banking activities, lending
activities to corpora customers, agency business
and automated teller machines (ATMs). It is
involved in providing a wide range of products an
services to individuals, large corporates,
commercial enterprises, institutional customers,
and public bodies. It has a market
capitalization of ?4,27,578 Crore.
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ICICI Bank
ICICI Bank is a private sector bank with
subsidiaries in Canada and UK, and branches in
the US, Bahrain, Singapore, Oman, Qatar, and
China. It has a large network consisting of 5,275
branches and 15,589 ATMs in the country. It has a
market capitalization of ?5,22,567Crore. ICICI
Bank provides banking and financial services
including commercial banking and treasury
operations. The bank operates in Treasury,
Wholesale Banking, Retail Banking, and Other
Banking segments. Its wide range of products
consists of savings accounts, senior citizen
accounts, womens accounts, current accounts,
personal loans, home loans, gold loans, car
loans, credit cards, recurring deposits, fixed
deposits, and life and general insurance. It
provides a range ofInternet banking services and
Mobile banking services.
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Indian Oil Corporation Ltd.
Indian Oil Corporation Ltd. is a public sector
undertaking of the Ministry of Petroleum and
Natural Gas, Government of India. It has a market
capitalization of ?99,342 Crore. Its business
operations involve the entire hydrocarbon value
chain, ranging from refining, pipeline
transportation, and marketing, to exploration and
production of petrochemicals, crude oil and gas,
alternative energy sources, gas marketing, and
other operations. It has a large network of bulk
storage terminals, fuel stations, aviation fuel
stations, inland depots, liquefied petroleum gas
(LPG) bottling plants as well as lube blending
plants. It has set up approximately 29 battery
swapping stations and around 257 electric vehicle
(EV) charging stations at its energy pumps. It
owns and operates approximately nine refineries
across the country.
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Vedanta Ltd.
Vedanta Ltd. is a diversified natural resources
company. It explores for, extracts, develops,
produces, processes, and sells zinc, oil and gas,
lead, copper, silver, aluminium, steel, iron ore,
pig iron, and metallurgical coke. The company
also operates several thermal coal-based power
plants and wind power plants. Furthermore, the
company manufactures glass substrates in South
Korea and Taiwan. It also has operations in many
other countries across the world. Vedanta was
formerly known as Sesa Sterlite Limited. It
changed its name to Vedanta Limited in March
2015. It has a market capitalization of ?84,696
Crore and reported a sales growth of 51 per cent.
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Infosys Ltd.
Infosys Ltd., formerly known as Infosys
Technologies Limited, provides technology,
business consulting, engineering, as well as
outsourcing services. Its end-to-end business
solutions comprise consulting, systems
integration, enterprise solutions business
information technology (IT) services such as
application development and maintenance,
infrastructure management, independent validation
services, and engineering services that comprise
product engineering, life cycle solutions, and
business process management. It also provides
business platforms and solutions. Finacle is its
banking product offering solutions to address the
core banking, e-banking and mobile banking needs
of corporate, retail, and universal banks
globally. It also provides cloud computing
services. It has a market capitalization of
?6,01,837 Crore and a sales growth of 21 per cent.
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ITC Ltd.
ITC Ltd. is a Tobacco company with a diversified
presence in the FMCG sector, Hotels, Packaging,
Paperboards Specialty Papers, Agri-Business, as
well as Information Technology. It is the market
leader in its traditional businesses of
Cigarettes, Paperboards, Hotels, Packaging, as
well as Agri-Exports. ITC is rapidly capturing
market share in its businesses of Packaged Foods
Confectionery, Personal Care, Branded Apparel,
and Stationery. It has a market capitalization
of ?3,62,711 Crore and a sales growth of 22 per
cent. The highest profit margin companies in
India have been listed above. This comprehensive
list makes it easier for investors and analysts
to decide which companies to invest in based on
profitability.
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FAQs
Q.WhaTisEBITDA? EBIDTA stands for Earnings
before Interest, Tax, Depreciation and
Amortization. It tells us about the overall
performance of the company and is used for
calculating many financial ratios. It is
calculated as a sum of Net Income, Interest
Expense, Taxes, Depreciation, and
Amortization. Q.Whatisthedifferencebetweenthecalc
ulationofGrossProfitMarginandNetProfitMargin? Gro
ss profit margin shows the percentage of revenue
that exceeds the cost of goods sold (COGS). Net
Profit Margin is the ratio of Net Profit to
Revenue. Gross Profit Margin (Revenue-COGS)/Reve
nue 100 Net Profit Margin (Net Income)/Revenue
100 Where, COGS Cost of Goods Sold Net
Income Revenue COGS Operation Expenses
Other expenses Interest Taxes
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