The Hindu Business Line : Central PSEs record 64 pc increase in net profit in 2003-04

CENTRAL Public Sector Enterprises (CPSE) have shown a 64 per cent increase in cumulative net profit at Rs 53,169 crore in 2003-04, while the turnover of these firms rose about 10 per cent to Rs 5,86,140 crore against the previous year, according to the Public Enterprises Survey 2003-04.

This is despite the fact that budgetary support to these enterprises during the year came down by 6 per cent. Instead the CPSE's reliance on extra budgetary resources went up by 27 per cent in 2003-04, which, along with internal resources, formed the major portion of their resource mobilisation effort during the year.

The financial year witnessed a significant number of enterprises moving out of the red. Of 242 enterprises included in the survey, a total of 140 firms made profits in 2003-04, as against 120 in the previous fiscal. The number of loss-making enterprises was down to 88 in 2003-04, from 105 in 2002-03.

According to the data, the enterprises reported a 19 per cent increase in net worth at Rs 2,50,822 crore during the year. Foreign exchange earnings of the enterprises through the export of goods and services increased to Rs 34,893 crore in 2003-04, from Rs 26,296 crore during the previous year. The better performance by the firms translated into nearly 9 per cent higher contribution to the Central Exchequer at Rs 89,025 crore in 2003-04, through excise and customs duty, corporate tax, interest on loans, dividend and other duties.

The list of the enterprises is rather top-heavy, with the top 10 enterprises, including Indian Oil Corporation, Hindustan Petroleum, Bharat Petroleum and Food Corporation of India, contributing nearly 73 per cent of the turnover of all the enterprises. In fact, the list of loss-making enterprises is also quite top heavy, with the top 10 loss-making enterprises led by Fertilizer Corporation of India Ltd., Hindustan Fertilizer Corporation Ltd, and ITI Ltd, accounting for 66 per cent of the total loss of Rs 8,398.97 crore during 2003-04.

Bharat Sanchar Nigam Ltd and Steel Authority of India Ltd led the group of enterprises recording the biggest improvement in performance during 2003-04. While SAIL strode into the black with a net profit of Rs 2,512 crore, as against a loss of Rs 304 crore in 2002-03, BSNL recorded a 313 per cent jump in profit at Rs 5,976 crore during 2003-04, as against the previous fiscal.

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