First time in five years, PSU profits fell in 2015

For the first time in five years, the profits of India’s state-owned companies shrank, by about 20 per cent in 2015, with 77 public-sector units (PSUs) reporting losses and contribution to the exchequer dropping $3b over the previous year, according to the latest government data available. The drop in profits — from $22b to $17b — over 2013-14 comes in the backdrop of Prime Minister Narendra Modi’s 2016 I-D declaration that a “new culture” had helped Air India and Bharat Sanchar Nigam Limited (BSNL) improve their performance.

As many as 235 PSUs — companies in which the central government or other government companies held at least 51 per cent of shares — surveyed by the Ministry of Heavy Industries and public enterprises saw profits drop in a year that India’s economy grew 7.3 per cent over 4.7 per cent in 2013-14. Except electricity, PSUs in other sectors reported a fall in profits or a rise in losses during 2014-15 compared with the previous year.

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