India's Top PSUs 2021

20 Aggregate Net Profit of Operating CPSEs Falls by Nearly 35% in FY20 The decline in the gross revenues of CPSEs was reflected at the bottom-line level as well, with the aggregate net profit of operating CPSEs falling by nearly 35% y-o-y in FY20. Although the decline in profits was broad-based, the sector that witnessed the sharpest decline in FY20 was petroleum (refining and marketing). Out of 256 operating CPSEs, 171 reported net profit to the tune of ` 1.4 trillion in FY20. The aggregate net profit of profit-making CPSEs declined by almost 21% in FY20, largely attributed to significantly lower margins of crude oil and petroleum (refinery andmarketing) CPSEs. In the other hand, the aggregate loss of 84 loss-making CPSEs deepened by 42% to ` 448.2 billion in FY20, with a bulk of the losses being borne by the telecommunication and information technology sectors. Top 5 profitable sectors accounted for 83% of the net profit of profit-making sectors 24 20 15 14 10 0 5 10 15 20 25 30 Coal Power Genera � on Financial Services Crude Oil Power Transmission Sha re (%) *Data pertains to the share of each sector in the aggregate net profit of profit-making PSUs Source: Public Enterprises Survey 2019-20, Department of Public Enterprises Market Capitalization of Listed PSUs falls by 40% in FY20 FY20 had been the worst year for the Indian stock markets since FY09. The economic headwinds that were already being experienced during the year were exacerbated by the outbreak of the COVID-19 pandemic. Apart from the pandemic, the US-China trade war, slowing earnings growth and falling demand dragged the indices during the year. Although merely 58 out of the 4,700+ companies listed on the BSE are PSUs, they have a sizeable 8-10% share in the aggregate market capitalisation of BSE. In FY20, however, with a 40% decline in the market cap of the listed PSUs, their share in the total market cap of the BSE shrunk to 7.2% as of March 31, 2020. CPSEs Contribute to 65% of the Aggregate CSR Spend of Indian Corporates in FY20 Despite a decline in net profit, CSR expenditure of the CPSEs increased by almost 32% to ` 50.9 billion in FY20. Interestingly, as per data furnished by the Ministry of Corporate Affairs, all Indian Corporates collectively spend ` 78 billion on CSR during FY20. To put things in perspective, merely 150 eligible CPSEs accounted for more than 65% of the aggregate CSR spend of Indian corporates during FY20, which showcases the unwavering commitment of PSUs to the cause of sustainable growth and development. The top-three cognate groups that spent the most on CSR activities were Petroleum (Refinery & Marketing ( ` 12,520 million), Crude Oil ( ` 7,250 million), and Power Generation ( ` 6,820 million). These three collectively accounted for 52% of the total CSR spend of CPSEs during the year. Dun & Bradstreet