INDIACSR News Network
NEW DELHI: Dun & Bradstreet (D&B), the world’s leading provider of global business information, knowledge and insight, on 31 May launched the sixth edition of its premium publication, ’India’s Top PSUs 2013’ in New Delhi.
The publication profiles companies in the PSU sector and highlights some of the prominent issues faced by them. India’s Top PSUs 2013 includes a comprehensive industry overview comprising of the various developments associated with this sector along with the future outlook.
The publication, ‘India’s Top PSUs 2013’ also includes a special section “Socially Responsible Business: A PSU Perspective”. This special section aims at investigating the Corporate Social Responsibility (CSR) initiatives of PSUs and analyzes the contribution made by these organizations in the overall economic and social development of the country.
Speaking at the release of the publication, Mr. Kaushal Sampat, President & CEO – India, Dun & Bradstreet said “The topline of Indian public sector companies grew by over 20% during 2011-12 which was their best aggregate performance in the last 10 years. The performance of the 123 central PSUs covered in the publication reflects similar trends and further reveals that Navratna companies outperformed Maharatna and Miniratna companies with a total income growth of 33% during the year. Despite high input costs, the 123 central PSU’s reported a 13% growth in net profit.”
He further added “The performance during the first nine months of FY13 for the 57 central PSUs with available financials revealed a modest growth of 9% in total income as compared to the same period in the previous year. High input cost mounted pressure on the overall margins of these companies which decreased 60 basis points as compared to the previous year to 5.3%.”
India’s Top PSUs 2013 was released by Mr. T.K.A.Nair, Advisor to the Prime Minister of India, Government of India; along with Mr. Shaktikanta Das, IAS, Additional Secretary, Dept of Economic Affairs, Ministry of Finance, Government of India. Leading names from the PSU sector participated in a panel discussion on ‘Driving inclusive development through CSR – A PSU Perspective’.
‘India’s Top PSUs 2013’
The significant role of Public Sector Undertakings (PSUs) in achieving overall socio-economic development of the country can never be over stressed. The gross turnover of Central Public Sector Enterprises (CPSEs) is equivalent to over 20% of the country’s GDP, 9% of country’s total export earnings and 5% towards employment in the organised sector. Over the past few years, the public sector companies have made conscious efforts to improve their operational efficiencies and financial performance. The publication, “India’s Top PSUs 2013” charts the financial performance of top PSUs during FY12 and attempts to highlight key opportunities and challenges for these companies.
The publication profiles 123 leading PSUs that were categorised into 81 companies in non-financial services segment and 42 companies in financial services segment including 6 NBFCs; 26 banks; 7 insurance companies and 3 special institutions. The publication covers financial analysis of these companies during FY12 and quarterly performance of 57 PSUs during the first three quarters of FY13.
Key financial performance highlights of Top PSUs during FY12 and Apr-Dec 2012:
Total income for Top PSUs increased at a healthy pace of 23.1% to Rs. 25,211.7 bn in FY12. The income growth was largely contributed by the non-financial services segment, overall income for which grew 26% as compared to a growth of 18.5% in financial services segment. Oil refining in non-financial services and banking in financial services segment registered healthy top-line growth of 34.1% and 29.2% respectively.
Overall income for 7 PSUs with Maharatna status increased 24.3% to Rs. 5,867.5 bn in FY12. Top line growth for 12 Navratna PSUs increased the most by 32.5% whereas for 52 Miniratna companies top line increased at a relatively slower pace of 20.3% in FY12.
The overall net profit increased at a sluggish pace of 13.1% to Rs. 1,738 bn during FY12. The major sectors that dragged the profitability growth for PSUs were insurance, textile, trading and banking. Inflationary environment and resultant higher input cost and interest cost weakened the profitability of PSUs during FY12. Interest cost for all PSUs surged 40.2% and raw material consumption cost increased approx. 34% in FY12.
Net profit for PSUs with Maharatna status increased at a healthy pace of 21.8% in FY12 as compared to a slower growth of 2.4% and 17.4% in FY12 for Navratna and Miniratna segment respectively. Net profit for the banking sector increased at a sluggish pace of 10.3% during FY12.
Overall dividend payouts for PSUs increased 16.9% in FY12. Sectors showing better profit growth such as engineering and construction, power transmission, cola and coal products etc. also doled out more dividends in FY12. The banking and insurance sectors registered modest growth of 9.8% and 4.1% in dividend payouts for FY12. Overall total income for PSUs in the first three quarters of FY13 grew modestly by 8.9% to Rs. 14,559.9 bn indicating an overall slowdown in demand. PSU banks saw their topline grow 16.1% for the first three quarters of FY13 compared to a slower pace of 5.9% topline growth for non-financial services segment. Banks however registered highest q-o-q growth of 20.9% in the first quarter which then slowed down to 14.8% and 12.9% in subsequent quarters.
Net profit for the first three quarters of FY13 registered a decline of 1.3% to Rs 772.9 bn for PSUs. A 21.2% surge in interest cost and 10.2% rise in input cost have resulted in the decline in net profit during April-Dec 2012. However the pace of growth for both interest cost and input cost have slowed down in the second and third quarters compared to first quarter of FY13, indicating a possible moderation in inflationary environment.
Dun & Bradstreet (D&B):
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