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
5.6 -0.0
Consumer Sentiments Index
Base September-December 2015
95.8 +0.4
Consumer Expectations Index
Base September-December 2015
93.9 +0.6
Current Economic Conditions Index
Base September-December 2015
98.7 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Dec 16 Mar 17 Jun 17 Sep 17
New projects 2.33 3.79 2.06 0.99
Completed projects 1.01 1.94 1.14 0.99
Stalled projects 1.13 0.70 2.66 0.64
Revived projects 0.18 0.67 0.30 0.22
Implementation stalled projects 0.82 0.33 0.67 0.61
Updated on: 19 Nov 2017 4:20PM
Quarterly Financials of Listed Companies
(% change) Dec 16 Mar 17 Jun 17 Sep 17
All listed Companies
 Income 6.2 10.2 9.9 8.6
 Expenses 6.3 11.9 10.1 9.9
 Net profit 40.3 15.7 -19.1 -17.9
 PAT margin (%) 6.1 6.0 5.4 6.0
 Count of Cos. 4,507 4,438 4,288 2,716
Non-financial Companies
 Income 5.9 11.8 10.6 8.6
 Expenses 7.2 15.6 10.8 8.6
 Net profit 24.5 -2.5 -24.4 -5.0
 PAT margin (%) 6.2 6.2 5.3 6.9
 Net fixed assets 6.9 10.0
 Current assets 2.6 2.1
 Current liabilities 8.8 9.9
 Borrowings 4.8 4.1
 Reserves & surplus 6.2 8.1
 Count of Cos. 3,488 3,439 3,340 1,982
Numbers are net of P&E
Updated on: 19 Nov 2017 4:29PM
Annual Financials of All Companies
(% change) FY14 FY15 FY16 FY17
All Companies
 Income 10.0 5.2 1.1 6.6
 Expenses 9.9 5.2 1.2 6.8
 Net profit -2.2 1.6 -12.9 20.2
 PAT margin (%) 3.2 3.2 2.9 6.5
 Assets 12.3 9.4 9.6 8.8
 Net worth 9.6 8.7 10.3 8.5
 RONW (%) 6.2 6.1 5.1 9.6
 Count of Cos. 23,895 23,579 20,184 3,629
Non-financial Companies
 Income 9.7 4.3 0.1 6.5
 Expenses 9.3 4.5 -0.6 7.4
 Net profit -2.7 -5.5 11.5 14.3
 PAT margin (%) 2.2 2.1 2.6 6.5
 Net fixed assets 11.6 13.4 15.1 7.3
 Net worth 8.2 7.1 10.6 7.2
 RONW (%) 5.1 4.9 5.4 11.0
 Debt / Equity (times) 1.1 1.1 1.1 0.6
 Interest cover (times) 2.0 1.9 2.0 3.7
 Net working capital cycle (days) 69 67 66 50
 Count of Cos. 19,154 19,053 16,707 2,782
Numbers are net of P&E
Updated on: 15 Nov 2017 2:29PM

Data added for HPI at Assessment prices and HPI at Market prices