New Delhi: Central Public Sector Enterprises (CPSEs) in the petroleum and natural gas, power, and financial Services sectors contributed nearly 70 percent of the total net profits earned by government-owned companies in FY2021–22, according to a performance audit report released by the Comptroller and Auditor General (CAG) of India. Out of the Rs 2,69,307 crore total profit posted by 258 government companies and corporations in 2021–22, 90 CPSEs in these three core sectors accounted for Rs 1,86,317 crore, or 69.18 percent of the total.
The CAG’s report, tabled in Parliament, highlights the continued dominance of India’s energy and financial CPSEs in public sector earnings, with several top-performing companies surpassing Rs 10,000 crore in net profit during the year.
According to the report, the top five profit-making CPSEs in 2021–22 were Oil and Natural Gas Corporation Ltd (ONGC), which posted a net profit of Rs 40,306 crore, Indian Oil Corporation Ltd (IOCL), which earned Rs 24,184 crore, NTPC Ltd, which recorded Rs 16,677 crore, Power Grid Corporation of India Ltd, with a profit of Rs 16,016 crore; and State Bank of India, which earned Rs 15,470 crore.
Together, these five companies generated over Rs 1.12 lakh crore in net profit — more than 41 percent of the total government company profits reported during the year.
Other major contributors with profits exceeding Rs 10,000 crore include Bharat Petroleum Corporation Ltd (BPCL), which earned Rs 11,681 crore, Hindustan Petroleum Corporation Ltd, which recorded Rs 10,682 crore, and Coal India Ltd, which posted a net profit of Rs 17,378 crore.
The Petroleum & Natural Gas sector also led in terms of market capitalisation, with CPSEs in the sector collectively valued at Rs 5.44 lakh crore as of March 2022 — representing 34.24 percent of the total CPSE market cap. The sector also posted the highest absolute gain in market value, up Rs 1.13 lakh crore or 26.44 percent during FY22.
Nine petroleum-sector CPSEs contributed Rs 37,833 crore in dividends, making up over a third (34.07 percent) of the total dividend payouts by government-owned firms.
Despite the strong financials, the CAG flagged non-compliance with the Centre’s dividend directives by 45 CPSEs that had adequate retained earnings and general reserves. Their failure to declare dividends led to a shortfall of Rs 5,811 crore in government receipts.
The report also noted shifts in market cap classifications. One Small Cap CPSE graduated to Mid Cap, while three Mid Cap CPSEs moved up to Large Cap. One Large Cap CPSE slipped to Mid Cap. This resulted in 13 Mid Cap and 10 Large Cap CPSEs by the end of FY22.
Public sector stocks outperformed broader markets during the year. While the S&P BSE Sensex rose by 18.3 percent, the S&P BSE-CPSE Index surged 27.17 percent, reflecting increased investor interest in government enterprises, especially in core sectors.
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