Centre asks PSUs to assess their cash reserves

Wants PSUs to ramp-up dividend payouts, share buybacks

by Nidhi Bhati

The central government has directed central public sector enterprises (CPSEs) to assess their financial status, amount of cash reserves and state of their balance sheets, as per a report in Business Standard. The government wants CPSEs to utilise their cash reserves to pay dividends and buy back shares, if they are not utilising their cash reserves for capex needs. The amount the Centre garners from share buybacks by public sector units (PSUs) started being counted as part of divestment proceeds from 2015-16. With revenues from sources like taxes and divestment hit adversely due to the coronavirus pandemic, proceeds from dividends and buybacks will help the government meets its disinvestment target of Rs.2.1 trillion for 2020-21, as per industry sources. Dividends from non-financial PSUs have been budgeted at Rs.657.5 billion.

References
1. https://www.business-standard.com/article/economy-policy/govt-to-ask-central-psus-to-ramp-up-dividend-payouts-share-buybacks-120052601264_1.html
CMIE STATISTICS
Unemployment Rate
Per cent
9.1 -0.0
Consumer Sentiments Index
Base September-December 2015
42.7 0.0
Consumer Expectations Index
Base September-December 2015
44.9 +0.7
Current Economic Conditions Index
Base September-December 2015
39.4 -1.1
Quarterly CapEx Aggregates
(Rs.trillion) Sep 19 Dec 19 Mar 20 Jun 20
New projects 3.12 5.15 3.39 0.57
Completed projects 0.85 1.65 1.70 0.17
Stalled projects 0.41 0.61 0.77 0.11
Revived projects 0.43 0.83 0.42 0.53
Implementation stalled projects 0.90 0.15 9.30 0.07
Updated on: 10 Jul 2020 3:28PM
Quarterly Financials of Listed Companies
(% change) Jun 19 Sep 19 Dec 19 Mar 20
All listed Companies
 Income 4.6 -2.3 -1.7 -4.0
 Expenses 2.7 -3.1 -2.2 -0.9
 Net profit 17.5 -1.3 -11.1 -44.3
 PAT margin (%) 6.2 5.3 5.1 3.0
 Count of Cos. 4,486 4,445 4,407 2,657
Non-financial Companies
 Income 2.4 -6.3 -5.5 -8.2
 Expenses 1.6 -6.7 -6.4 -4.1
 Net profit -7.5 -13.5 -14.1 -46.0
 PAT margin (%) 6.3 5.8 5.7 4.2
 Net fixed assets 10.4 13.8
 Current assets 5.0 2.8
 Current liabilities 5.0 3.8
 Borrowings 8.4 14.9
 Reserves & surplus 6.0 4.3
 Count of Cos. 3,361 3,335 3,301 2,050
Numbers are net of P&E
Updated on: 10 Jul 2020 3:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.3 13.2 4.3
 Expenses 9.8 13.4 2.8
 Net profit -39.9 20.7 15.0
 PAT margin (%) 2.0 2.4 10.3
 Assets 10.9 9.2 11.8
 Net worth 7.5 8.5 6.5
 RONW (%) 3.5 4.4 11.7
 Count of Cos. 26,220 24,732 364
Non-financial Companies
 Income 8.5 13.6 0.1
 Expenses 8.6 13.8 -1.2
 Net profit -8.7 23.5 4.6
 PAT margin (%) 2.8 3.2 12.7
 Net fixed assets 7.1 4.9 30.4
 Net worth 6.1 8.4 3.6
 RONW (%) 5.7 7.0 15.3
 Debt / Equity (times) 1.0 0.9 0.5
 Interest cover (times) 2.1 2.4 6.3
 Net working capital cycle (days) 77 69 -13
 Count of Cos. 21,415 20,146 258
Numbers are net of P&E
Updated on: 09 Jul 2020 7:12PM