Musings: Is this performance by villians(Oil PSU Officers) or PATRIOTS?

Is this performance by villians(Oil PSU Officers) or PATRIOTS?

written by Unknown at Tuesday, January 13, 2009

Here is an article from ET on the role of PSU's specially oil PSU's.
I hope Zee news people will read this as they have shamelessly termed oil psu officers as traitors during the recent strike.

The aggregated revenues of the 31 PSUs are more or less equal to
the aggregated revenues of the 216 private sector companies, according to a report by business consultancy firm Dun & Bradstreet. Indian Oil Corporation, Life Insurance Corporation
and Bharat Petroleum Corporation (in that order) have been adjudged India's top PSU companies in term of income by business consultancy firm Dun & Bradstreet. The oil refiner-cum-marketer, India Oil Corp logged revenues to the tune of Rs 23,09,540 million in 2008 while LIC and BPCL posted Rs 20,63,785 million and Rs 11,19,422 million respectively as turnover sales during the considered period. At 1.53 PM, almost all major PSU companies were trading lower in the range of 1 and 6%. IOC (down 3% at Rs 422), BPCL (down 4.1% at Rs 365), HPCL (down 2.1% at Rs 261), SBI (down 1.8% at Rs 1193), SAIL (down 6% at Rs 74.45), NTPC (down 4.5% at Rs 170), Mangalore Refinery (down 0.5% at Rs 39), MMTC (down 5% at Rs 17,256), BHEL (down 5.1% at Rs 1,344), GAIL (down over 1% at Rs 200.25) and Canara Bank (down 0.9% at Rs 204) are being sold heavily by investors. Chennai Petroleum, BEML, NMDC and RCF are trading higher in the range of 0.3 and 2%. "With the government already in election mode, investors are expecting several popular sops which could be detrimental to public sector companies. The reduction in oil prices is one such move, which is not so positive for oil refining and marketing companies. All said, investors should buy PSU stocks at every opportunity. The market is expecting government to announce dividend in several closely-held companies," Ventura Securities' institutional sales head Bharat Shah said. According to Dun & Bradstreet, the aggregate total income of the profiled CPSUs (Central Public Sector Undertakings) stood at a little over Rs 14,675 billion during FY08, which represented a y-o-y growth of 16.8%, and is approximately 31.1% of the country's Gross Domestic Product at current prices for FY08. The aggregate Net Profit reported by the profiled 121 CPSUs in FY08 sums up to Rs 1,221.36 billion. Further, the y-o-y growth in aggregate net profit for all 121 companies stood at around 10%. Together, these companies reported an aggregate net worth of Rs 7,690.84 billion for FY08, a Net Profit Margin of 8.3% and a return on net worth of 15.9%. which is equivalent to 31.1% of the country's GDP at current market prices. In 2008, the public sector companies paid over 33.5% of their net profits as dividends, whereas their private sector counterparts paid 20.6% of their profits as dividends. "The cash ratio for the listed public sector enterprises rose sharply from 24% in 2004 to around 42% in 2008, whereas for the private sector companies, the ratio improved from 19.18% in 2004 to 21% in the year 2008. However, for private sector companies, 2008 marks a decline from the peak levels of around 30% seen in 2005, 2006 and 2007," the D&B report said. Over the last 5 years, put together the 31 PSUs have had consistently lower debt-equity ratios than their private sector counterparts. In FY08, the aggregate Debt to Equity ratio for the 31 PSUs stood at 0.45, while the corresponding debt to equity ratio for the private sector companies stood at 0.68.

Source http://economictimes.indiatimes.com/articleshow/3967558.cms?frm=mailtofriend

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