After a 15% decline in aggregate net profit in FY23, the Central Public Sector Enterprises (CPSEs) posted a robust 47% annual growth in net profit in FY24, thanks to a surge in profits of petroleum sector firms.
The operating CPSEs, totalling 272, reported an aggregate net profit of Rs 3.22 lakh crore in FY24 compared with Rs 2.18 lakh crore in FY23.
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Oil and Natural Gas Corporation (ONGC) recorded the highest profit at Rs 40,526 crore in FY24, marginally up on year. ONGC was closely followed by Indian Oil, which reported 3.8 times profit growth at Rs 39,619 crore.
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Bharat Sanchar Nigam Ltd was the top lossmaking CPSE, with -Rs 5,371 crore in FY24, followed by Rashtriya Ispat Nigam Ltd (-Rs 4,849 crore).
Dividends declared by CPSEs in FY24 rose 16.3% to Rs 1.23 lakh crore compared with Rs 1.05 lakh crore in FY23. Gross revenue of the operating CPSEs declined by 4.7% to Rs 36.08 lakh crore in FY24.
Thanks to efficient capital management by the Centre, total market capitalisation (M-cap) of 66 listed CPSEs rose 121% to Rs 37.23 lakh crore as on March 31, 2024, as against Rs 16.85 lakh crore as on March 31, 2023 of 63 CPSEs. Major contributors of increase in M-Cap were NTPC, ONGC, Hindustan Aeronautics, Coal India and Indian Railway Finance Corporation.
Salary and wages rose by nearly 4% to about Rs 1.72 lakh crore in FY24. The total number of regular employees fell 3.1% on year to 0.81 million while contractual employees rose by 8.8% on year to 0.7 million, reflecting the trend in the corporate sector engaging more contractual employees to bring down wage bill. This was flagged by chief economic adviser Anantha Nageswaran recently. He said corporations employing more contractual workers could hurt consumption due to uncertainties associated with this category of jobs.
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Research and Development (R&D) expenditure of all CPSEs rose almost 50% to Rs 10,813 crore in FY24 against Rs 7,233 crore in FY23.
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