The financial year 2020-21 has turned out to be the powerhouse of profits for as many as 19 CPSEs (Central Public Sector Enterprises). According to a media report, these CPSEs including National Fertilisers Ltd (NFL), Chennai Petroleum Corp Ltd (CPCL) and Western Coalfields Ltd (WCL), were drowning in major losses before that.
According to a Public Sector Enterprises Survey 2020-21, eight out of nineteen CPSEs belonging to industries such as fertilisers, industrial and consumer goods, financial services and refineries, reported major losses for two consecutive years before FY21.
It is being reported that companies have seen profits and rising annual turnover because of the fall in expenditure. Some of the companies that have managed to return to the financial race in FY21 include, Hindustan salts, Cement Corp of India, Sambhar salts and Andrew Yule & company.
The reports strongly suggest that the transformational shift of all these companies from incurring losses to earning profits is majorly due to the fall in expenditure, as the companies have witnessed a major fall in their revenues. Chennai Petroleum Corp Ltd (CPCL), National Fertilisers Ltd (NFL) and Western Coalfields Ltd (WCL) have earned profits over Rs 200 crores each, according to the reports, Chennai Petroleum Corp Ltd (CPCL) reduced its total expenditure by 20 per cent, National Fertilisers Ltd (NFL) reduced its expenditure by 10.45 per cent and Western Coalfields Ltd (WCL) reduced its total expenditure by 5.85 per cent.
The Union Minister of State for Finance, Bhagwat Kisan Rao Karad, pointed out in Lok Sabha that, as per the information available, there are over 250 CPSEs that are operational with a total turnover of Rs 24,26,045 cores in the financial year 2020-21.
Adding more to his statement in the Lok Sabha, the minister mentioned that 177 out of these CPSEs fall into the profit-making category and have made a total profit of Rs 1,89,320 crores. Bhagwat Kisan Rao Karad alleged that during the financial year 2021-21, the profit-making CPSEs increased by a margin of 38 per cent and the loss-making CPSEs decreased by a margin of 29.85 per cent.