India’s Top PSUs 2019

18 Within sectors, manufacturing, processing & generation sector reported moderation in growth of aggregate net profits to 6.1% y-o-y in FY18 from 33.2% in FY17. This was due to a substantial moderation in growth in aggregate profits of petroleum (refinery & marketing) and heavy & medium engineering sectors. Sectors like steel, chemicals & pharmaceuticals, industrial & consumer goods and textiles on the other hand witnessed aggregate net loss on account of higher raw material costs and subdued demand conditions. Services sector reported 10.7% y-o-y growth in aggregate net profits in FY18. However, this came on the back of low base of the previous year (-16.7% in FY17). The telecommunication & information technology sector reported an aggregate net loss of ` 107.3 bn in FY18 as against ` 74.5 bn in FY17, accounting for almost one- third of the net loss of loss-making CPSEs in FY18. Top 3 profit making sectors (in profit-making CPSEs) Top 3 loss making sectors (in loss-making CPSEs) Sector Net profit of profit- making CPSEs (% share) Sector Net loss of loss-making CPSEs (% share) 1 Petroleum (refinery & marketing) 25.6 1 Telecommunication & information technology 35.1 2 Crude Oil 14.8 2 Transport & logist ic services 19.6 3 Power Generation 13.5 3 Coal 13.0 Total (1 to 3) 53.9 Total (1 to 3) 67.7 Source: Public Enterprises Survey 2017-18, Department of Public Enterprises CPSEs contribution to central exchequer declined in FY18 In FY18, there was an introduction of Goods & Services Tax (GST) in July 2017 which subsumed majority of indirect taxes like service tax, central excise and value added tax, amongst others. As a result, contribution in terms of taxes and duties declined by 2.5% y-o-y in FY18 as against an increase of 39.2% y-o-y in FY17. This coupled with a lower dividend on central government equity and contribution in terms of interest resulted in reduction in overall contribution to central exchequer. The total contribution of CPSEs to the central exchequer during FY18 declined by 3.0% y-o-y as against an increase of 30.8% y-o-y in FY17. Real investment/ gross block in CPSEs witnessed a strong growth in FY18 The aggregate real investment in CPSEs measured in terms of gross blocks registered a growth of 12.1% y-o-y in FY18 as against 6.3% in FY17. The accumulated real investment in CPSEs stood at ` 19,846.2 bn in FY18 as against ` 17,701.9 bn in FY17. Amongst sectors, manufacturing, processing & generation sector has a major share of 45% in real investment, followed by services and mining & exploration sectors with shares of 33% and 20% respectively.