How Have India’s Leading PSUs Achieved Impressive Profit Growth?
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Synopsis
Discover how India's top public sector companies are soaring in profits during the January-March quarter of 2024-25. This growth is set to bolster the government's fiscal health, with major players like SBI and LIC leading the charge. Dive into the numbers and what they mean for the economy.
Key Takeaways
- Robust profit growth among India's top PSUs.
- SBI and LIC lead with significant profits.
- Contributions to government finances from higher dividends.
- Substantial capital expenditures drive growth.
- Fiscal deficit target met at 4.8%.
New Delhi, June 2 (NationPress) India’s leading public sector enterprises in the financial, power, and energy domains have demonstrated significant profit growth during the January-March quarter of 2024-25, which is anticipated to enhance the government's fiscal stability further.
The nation’s foremost bank, State Bank of India (SBI), and the insurance behemoth Life Insurance Corporation of India (LIC) spearheaded this growth with a net profit of Rs 18,643 crore and Rs 19,013 crore, respectively. SBI’s net profit for the fiscal year 2024-25 has escalated to Rs 70,901 crore, while LIC has achieved an impressive net profit of Rs 48,151 crore for the same period.
In the energy sector, Coal India reported a net profit of Rs 9,604 crore in the fourth quarter, whereas Indian Oil Corporation (IOC) noted a net profit of Rs 7,265 crore, along with ONGC, the upstream oil exploration titan, which recorded a net profit of Rs 6,448 crore during this quarter.
Within the power sector, NTPC, the largest electricity producer in the country, achieved a net profit of Rs 7,897 crore, while Power Finance Corporation (PFC), under the Ministry of Power, garnered a strong Rs 8,358 crore. Additionally, the Power Grid Corporation of India also documented a solid profit of Rs 4,143 crore during the January-March quarter.
In addition to contributing more to government finances via increased dividends, these major public sector enterprises also boost revenues through elevated corporate tax payments.
Moreover, the substantial capital expenditure plans of these government-owned firms are crucial in propelling growth and generating employment within the economy.
At the same time, the government has successfully met its fiscal deficit target for 2024-25, set at 4.8 percent of the gross domestic product (GDP) in the revised budget estimate for the year, as data from the Controller General of Accounts revealed on Friday.
According to the CGA data, the Central government amassed Rs 30.36 lakh crore in revenue from both tax and non-tax sources, accounting for 98.3 percent of the revised Budget Estimates (RE). The earnings from PSUs form a significant portion of these non-tax revenues.
Point of View
I stand firmly with the nation in recognizing the impressive performance of our public sector enterprises. Their robust profit growth not only strengthens the government’s fiscal stance but also plays a vital role in stimulating economic growth and job creation. This is a promising sign for our economy's future.
NationPress
17/06/2025
Frequently Asked Questions
Which sectors are contributing to India's profit growth?
India's profit growth is primarily fueled by the financial, power, and energy sectors.
What is the fiscal deficit target for 2024-25?
The fiscal deficit target for 2024-25 is set at 4.8 percent of the GDP.
How much profit did SBI report for 2024-25?
SBI reported a net profit of Rs 70,901 crore for the fiscal year 2024-25.
What role do PSUs play in government finances?
Public sector undertakings (PSUs) contribute significantly to government finances through dividends and corporate taxes.
How much revenue did the Central government collect?
The Central government collected Rs 30.36 lakh crore as revenue from tax and non-tax receipts.
