5 Net Profit Ratio of Top Companies In India By Market Capitalization

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The ratio of total earnings after the tax payments to overall sales is called the net profit ratio formula. It shows how much gain is remaining after all administrative, manufacturing and financing expenses have been removed from trading and income taxes have been taken into account. To learn more about the net profit ratio formula, you can click the link given below

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Every business in India strives to improve the standard of its products and services, as well as the level of client happiness, and ultimately, the net profit ratio formula. A company is often rated based on many factors such as assets, revenue, earnings, sales, market value, share price, and so on.

When it comes to determining a firm’s growth, two of the most important elements to consider are its market capitalization and net profit ratio. In this article, we’ll look at the top five Indian firms based on their most recent market valuation and net profit ratio formula.

1. Reliance Industries

Mukesh Ambani is the current chairman and CEO of Reliance Industries Limited (RIL), an Indian multinational corporation based in Mumbai. Reliance Commercial Organization was co-founded by Dhirubhai Ambani and Champaklal Damani in the 1960s.

Reliance owns enterprises in textiles, petrochemicals, energy, retail, natural resources and telecommunications all over India. Reliance is one of India’s most lucrative businesses. With a present value of Rs. 2,408.25, RIL has a market capitalization of Rs. 15,27,635.61 crores and net profit of 31,944.00 crores. It has one of the best net profit ratios in the industry.

2. Tata Consultancy Services (TCS)

TCS (Tata Consultancy Services Limited) is an India-based multinational IT service and consulting firm based in Mumbai, Maharashtra. It is a Tata Group business with ventures in 149 sites in 46 countries.

TCS is India’s largest IT firm and the country’s second-largest organization by market capitalization. TCS is today considered one of the most significant IT solutions brands around the world. With a present price of Rs. 3,640.45, TCS has a market capitalization of Rs. 13,46,621.16 crores and net profit of 30,960.00 crores.

3. HDFC Bank

HDFC Bank is an Indian economic and banking firm headquartered in Mumbai, India. It was founded in 1994. Manmohan Singh, the then Union Finance Minister, inaugurated the company’s first corporate headquarters at Sandoz House in Worli. It is India’s biggest private bank.

It had 1,16,971 permanent workers as of March 2020, with 5,130 branches in 2,764 cities. By assets and market capitalization, it is India’s finest private sector bank. With a current price of Rs.1,513.55, it has a market capitalization of Rs. 8,38,652.14 crores and a net profit of 15413.68 crores.

4. Hindustan Unilever (HUL)

HUL (Hindustan Unilever Limited) was founded in 1933. This company is a British-Dutch¬†manufacturing corporation based in India’s Mumbai. Water purifiers, foods, drinks, personal care items, cleaning materials, and consumer products are among the firm’s offerings.

Hindustan Unilever has 35 product names in 20 divisions as of 2020, with 18,000 workers and sales of Rs. 47,029 crores during 2020-21. Hindustan Unilever’s market capitalization is Rs. 5,50,661.96 crores, with a current price of Rs. 2,343.65 and a net profit of 7,954.00 crores.

5. Bajaj Finance

Bajaj Finance Limited is an India-based non-banking monetary organization that is a part of Bajaj Finserv (NBFC). Consumer financing, SME (small and medium-sized enterprises) and business loans, and financial advisory are all areas where the organization operates.

The organization, which has its headquarters in Pune, Maharashtra, has 294 consumer branches and 497 rural sites, totalling more than 33,000 distribution points. With a prevailing price of Rs. 7,069.25, Bajaj Finance has a market capitalization of Rs. 4,26,695.93 crores and a net profit of 3,955.51 crores.

Bottom Line

As the net profit ratio formula considers all of a firm’s costs and income, it is a critical profitability statistic for a variety of reasons. The net profit ratio formula also aids in cost and price analysis. Because net profit margin is a percentage of sales, it may be used to compare organizations of various sizes in the same sector, from tiny enterprises to enormous conglomerates.

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