Central PSUs Experience 47% Surge in Net Profit for FY 2023-24, Market Capitalization Doubles
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New Delhi, Dec 22 (NationPress) The cumulative net profit of functioning Central Public Sector Enterprises (CPSEs) surged to Rs 3.22 lakh crore in FY24, compared to Rs 2.18 lakh crore in FY23, marking an impressive rise of over 47 percent, according to an official report.
The market capitalization of CPSEs has more than doubled in the Fiscal Year 2024-25 relative to FY 2023-24, the report indicated.
Key players contributing to the market cap growth include NTPC Ltd, Oil & Natural Gas Corporation Ltd, Hindustan Aeronautics Ltd, Coal India Ltd, and Indian Railway Finance Corporation Ltd.
A significant portion of the profit increase amounting to Rs 0.89 lakh crore originated from the Petroleum (Refinery & Marketing) sector, as per the report compiled by the Public Enterprises Department of the Finance Ministry.
"Within the Petroleum (Refinery & Marketing) sector, Indian Oil Corporation Ltd was the primary contributor to the net profit growth, accounting for Rs 0.31 lakh crore. This sector's profitability has substantially influenced the overall financial performance," the survey detailed.
The net loss of loss-making CPSEs decreased to Rs 0.21 lakh crore from Rs 0.29 lakh crore, indicating a reduction of over 27 percent. The major loss-making entities include Bharat Sanchar Nigam Ltd, Rashtriya Ispat Nigam Ltd, Mahanagar Telephone Nigam Ltd, Bharat Petro Resources Ltd, and NMDC Steel Ltd.
"Hindustan Petroleum Corporation Ltd turned around from a loss of Rs 0.15 lakh crore to a profit of Rs 0.15 lakh crore in FY 2023-24, while Bharat Sanchar Nigam Ltd managed to decrease its loss from Rs 0.08 lakh crore in FY 2022-23 to Rs 0.05 lakh crore in FY 2023-24," the report noted.
The contribution of all CPSEs to the Central Exchequer (CCE) through avenues such as excise duty, customs duty, GST, corporation tax, interest on Central Government loans, dividends, and other taxes amounted to Rs 4.85 lakh crore in FY 24, compared to Rs 4.58 lakh crore in FY 23, showcasing an increase of approximately 6 percent.
Among the CCE components, excise duty is the largest, accounting for 46 percent in FY 2023-24. This rise in CCE is primarily attributed to an increase in corporation tax from Rs 0.56 lakh crore in FY 2022-23 to Rs 0.81 lakh crore in FY 2023-24.
The top five CPSEs contributing to the Central Exchequer include Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd, Oil & Natural Gas Corporation Ltd, and Mangalore Refinery and Petrochemicals Ltd.
