CPSEs Report 47% Profit Growth In FY24, Led By Petroleum Sector

Central Public Sector Enterprises (CPSEs) recorded a 47% increase in net profit in FY24, reversing a 15% decline seen in FY23. The 272 operating CPSEs reported a combined net profit of ₹3.22 lakh crore in FY24, up from ₹2.18 lakh crore the previous year. The petroleum sector drove this surge, with key players posting significant gains.

Oil and Natural Gas Corporation (ONGC) topped the profit chart with ₹40,526 crore, a marginal rise from FY23. Indian Oil followed, reporting ₹39,619 crore in profit—a 3.8-fold increase from the previous year.

Petroleum Sector Leads CPSEs’ Profit Boom

Bharat Sanchar Nigam Ltd (BSNL) emerged as the biggest loss-making CPSE, with losses of ₹5,371 crore in FY24. Rashtriya Ispat Nigam Ltd followed with a loss of ₹4,849 crore. Meanwhile, dividends declared by CPSEs grew by 16.3%, reaching ₹1.23 lakh crore in FY24, compared to ₹1.05 lakh crore in FY23.

Gross revenue of the operating CPSEs dropped 4.7% to ₹36.08 lakh crore in FY24. However, market capitalization of 66 listed CPSEs jumped 121% to ₹37.23 lakh crore by March 31, 2024, aided by NTPC, ONGC, Hindustan Aeronautics, Coal India, and Indian Railway Finance Corporation.

Salaries and wages rose 4% to ₹1.72 lakh crore in FY24. Regular employees declined 3.1% to 0.81 million, while contractual employees grew by 8.8% to 0.7 million. Chief Economic Adviser Anantha Nageswaran warned that increasing reliance on contractual workers might hurt consumption due to job uncertainties.

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