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    PSEs in the lead among unlisted companies

    Synopsis

    Public sector units (PSUs) are often castigated for being loss-making. But the ET-CMIE Survey Of Unlisted Companies shows that some PSUs are at the top in rankings in terms of net profits.

    Public sector units (PSUs) are often castigated for being loss-making. But the ET-CMIE Survey Of Unlisted Companies shows that some PSUs are at the top in rankings in terms of net profits. There are also several turnaround cases among the PSU toppers which points to a growing consciousness to become profitable.
    The topper in terms of net profit is Bharat Sanchar Nigam (BSNL), which is the corporatised version of the department of telecom. It recorded a net profit of Rs 6,312 crore in ’02, nearly five times its previous year’s annualised net profit. At second and third places are two power generation companies, National Thermal Power Corporation (NTPC) and Nuclear Power Corporation. However, NTPC did not fare well in ’02. Its net profit declined 5.2% to Rs 3,540. Nuclear Power Corporation’s profit grew 88% during ’02.
    Tata Sons is first among private sector players with a net profit of Rs 751 crore. It is fifth in the list. Note that this figure is for ’01, since ’02 figures have not been provided by CMIE, and hence the ranking may change depending on the ’02 profit figure. The gap between Tata Sons and other private unlisted companies is telling, with the next company, Indian Farmers Fertiliser Co-op at 19th place with a 26% drop in net profit to Rs 231 crore.
    When it comes to sectors, what is clearly visible is that coal companies have been on a drive to improve profitability. Northern Coalfields which ranks fourth has seen a 28% increase in net profit to Rs 900 crore. Coal India’s net profit has improved 84% to Rs 517 crore. South Eastern Coalfields and Mahanadi Coalfields have raised their profit 820% and 20% respectively. There are a few exceptions like Singareni Colleries which has seen a 70% drop in its net profit to Rs 89 crore.
    There are several turnaround cases too, among the top 50. Central Inland Water Transport Corporation has earned a net profit of Rs 431 crore in ’02 compared to a loss of Rs 78 crore in the previous year. Rehabilitation Industries Corporation has turned in a net profit of Rs 330 crore compared to a loss of Rs 146 crore. Among the leading private sector companies that turned around are Hutchison Max Telecom. It has earned a net profit of Rs 63 crore as against a loss of Rs 6 crore. Aircel Digilink earned a profit of Rs 42.3 crore compared to a loss of Rs 119 crore. Jaypee Cement too, has done well, earning a net profit of Rs 63 crore as against a loss of Rs 15 crore. NTC, Lokhandwala Constructions, Honda Siel Cars India, Procter and Gamble Home Products and Balco are some of the other turnaround cases.
    Among sectors, apart from coal and lignite, others that seem to be doing well in terms of profits are power generation, cars, software, pharmaceuticals, telecom and construction/commercial complexes (like IT Parks). While some of these are well documented like power generation, software and pharmaceuticals, telecom companies seem to have ended their gestation period and started making profits in ’02.
    With regard to some companies that appear in the top 50, there are some exceptional events. Hindustan Paper Corporation has reported a huge increase in profits mainly due to interest on government loans written back. Also, Rehabilitation Industries Corporation and Gujarat Power Corporation have reported profit increases due to extraordinary income.
    Readers can e-mail their suggestions and feedback on our surveys to etsurveys@indiatimes.com
    The Economic Times

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