FinMin asks 12 PSUs to payout 30-100% of net profits in dividends

To compensate expected tax revenue shortfall

by Arjit Singh Bhambra

The ministry of finance has asked 12 PSUs to payout 30-100 per cent of their 2016-17 and 2017-18 net profits in form of dividends, share buybacks or bonus shares, as per a Reuters report. The ministry raised the demand after assessing financial health of 14 state-run companies on 25 October 2017. Two companies have been exempted from the same. With this, the government aims to compensate an expected shortfall in tax revenue during the current fiscal. All PSUs which were evaluated by the government have sought exemptions on account of increased financial burden. However, the ministry has not specified the combined amount of payouts expected of the 12 companies but has budgeted USD 21.9 billion in payouts for 2017-18.

References
1. https://www.reuters.com/article/us-india-economy-dividend-exclusive/exclusive-india-seeks-hefty-dividends-from-state-firms-as-its-revenues-falter-idUSKBN1DD162
CMIE STATISTICS
Unemployment Rate
Per cent
6.0 -0.1
Consumer Sentiments Index
Base September-December 2015
93.3 0.0
Consumer Expectations Index
Base September-December 2015
93.3 -0.3
Current Economic Conditions Index
Base September-December 2015
93.2 +0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.33 1.38 1.23 2.16
Completed projects 0.87 1.21 1.02 1.07
Stalled projects 2.67 0.69 0.93 3.34
Revived projects 0.23 0.34 0.23 0.14
Implementation stalled projects 0.73 0.73 0.58 1.05
Updated on: 27 Apr 2018 9:20AM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 9.6
 Expenses 9.9 9.0 12.9 13.1
 Net profit -19.9 -18.1 -13.9 -12.1
 PAT margin (%) 5.3 5.5 4.9 11.2
 Count of Cos. 4,483 4,470 4,433 119
Non-financial Companies
 Income 10.2 8.2 13.2 6.6
 Expenses 10.5 8.2 12.3 7.9
 Net profit -25.1 -6.0 12.7 -1.1
 PAT margin (%) 5.2 6.2 6.4 12.6
 Net fixed assets 9.2 10.1
 Current assets 78.7 6.6
 Current liabilities 11.0 20.8
 Borrowings 10.4 4.3
 Reserves & surplus 5.2 0.2
 Count of Cos. 3,461 3,444 3,430 86
Numbers are net of P&E
Updated on: 27 Apr 2018 9:20AM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.5 1.5 5.1 1.6
 Expenses 5.6 1.7 5.1 0.7
 Net profit 0.0 -10.3 23.7 9.2
 PAT margin (%) 3.1 2.8 3.6 8.3
 Assets 9.5 10.0 6.9 3.3
 Net worth 8.5 11.4 6.0 2.8
 RONW (%) 5.8 4.9 5.9 12.7
 Count of Cos. 25,647 23,668 20,755 19
Non-financial Companies
 Income 4.7 0.6 4.7 1.5
 Expenses 4.9 0.0 5.2 0.6
 Net profit -8.6 18.4 18.0 10.7
 PAT margin (%) 2.0 2.5 3.1 7.4
 Net fixed assets 13.3 17.3 5.4 4.4
 Net worth 6.9 12.0 4.4 2.9
 RONW (%) 4.6 5.1 6.0 11.5
 Debt / Equity (times) 1.1 1.1 1.0 0.2
 Interest cover (times) 1.9 1.9 2.1 11.8
 Net working capital cycle (days) 66 65 62 38
 Count of Cos. 20,897 19,807 17,287 17
Numbers are net of P&E
Updated on: 18 Apr 2018 11:50AM

Time series available from 1990 onwards