Nearly 66% CPSEs made profits in FY20 – lowest share in last five years
Fiscal year 2020, the one-year period just before the national lockdown was announced, was relatively poor Central Public Sector Enterprises (CPSEs) In terms of profit and employment. The share of profit-making firms fell to a six-year low in FY20. What is even more worrying is that the total profit of the profit making firms decreased while the total loss of the loss making firms increased. The continuous decline of loss-making ones like BSNL and Air India continued, resulting in huge loss of jobs in the public sector. The workforce of CPSEs has reduced by two lakh in two years.
Profit and Loss
About 66.8% of CPSEs made profits in FY20 – the lowest share in the last five years. The graph shows the share of CPSEs making profit/loss.
double whammy
The total net profit of profit making CPSEs declined from ₹1.74 lakh crore in FY19 to ₹1.38 lakh crore in FY20. On the other hand, the total net loss of loss-making CPSEs increased to Rs 44,817 crore from Rs 31,620 crore in FY19.
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the good The Bad and The Ugly
The first chart shows the amount of Profit* (169 CPSEs)/Loss (86) recorded by 255 CPSEs in FY20. The second chart shows the % increase (165 CPSE) / decrease (52) in the workforce between FY18 and FY20 with 217 CPSEs.
BSNL had the highest loss of ₹ 15.5 thousand crore while Air India had a loss of ₹ 8.5 thousand crore. On the other hand, ONGC’s profit was ₹25.3 thousand crore and NTPC’s profit was ₹19.3 thousand crore.
BSNL’s workforce declined from 1,83,522 employees in FY18 to 69,824 in FY20. MTNL’s workforce declined from 25,191 employees in FY18 to 4,182 in FY20 – a decrease of over 80%, highest among all CPSEs.
Source: Department of Public Enterprises
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