PERFORMANCE OF PUBLIC

SECTOR ENTERPRISES

 
GROUP 8
MANISHA CHAKRAVARTY
47/09

KAPIL AHUJA 51/09

PRAGGYA 89/09

SANDEEP INDUKURI 103/09

PRIODEEP DUTTA 123/09

EVENPREET SINGH 131/09

 INTRODUCTION
In India, public-sector undertaking (PSU) is a term used for
a government-owned corporation (company in the public sector).

There are 277 Central Public Sector undertakings in India. 

The statewise breakup is,

Andhra Pradesh - 14, Bihar - 2, Chattisgarh - 2, Delhi - 75,
Gujarat - 4, Haryana - 6, Jharkhand - 9, Karnataka - 22, Kerala –
6, Madhya Pradesh – 6, Maharashtra – 36, North East – 9, Orissa
– 5, Rajasthan – 6, Tamilnadu – 11, Uttar Pradesh – 22, West
Bengal – 35 and Others – 7
PSU’S
SAIL
Steel Authority of India (SAIL) is the largest steel
producer in India.

ONGC
Oil and Natural Gas Corporation(ONGC) was set up in
1956

AIR INDIA
Air India is India’s national Airline.
 Comparison with the private sector.
 8.5% net profit margin.

 Public sector units are contributing a

huge sum to the exchequer through
direct taxes and dividends.

 In 2008,the public sector companies

paid over 33.5% of their net profits as
dividends to equity shareholders,
where as their private sector peers
paid only 20.6% of their profits.
 The cash ratio for the public sector
enterprises rose sharply from 24%
in 2004 to 42% in 2008. while the
private sector cash ratio improved
from 19.18% to 21%.

 The 18 navratnas has a total

income of Rs 6871.62 bn in
fy2008, which is equalent to
15% of india’s GDP.
 STEEL AUTHORITY OF INDIA LTD.
Steel Authority of India (SAIL) is the largest steel
producer in India
In 2008, SAIL ranked 21st among the steel producing
companies with an amount of 13.7 mmt.
In 2007-08, its revenues stood at Rs.45, 685 crore,
more than twice the sales of Tata Steel, the second
largest company in the industry
 EXPANDING HORIZON
Hindustan Steel Private Limited was set up on
January 19, 1954
1972 - The Ministry of Steel and Mines drafted a
policy statement to evolve a new model for
managing industry formation of Steel Authority
of India Ltd
Till 1990, the Indian steel industry operated under
a regulated environment with insulated markets
and large scale capacities reserved for the public
sector
1992 - onset of liberalization and the Indian
economy was opened to the world
 The late 1990’s saw the expansion of the
production capacities of SAIL. This was partly
done through external borrowing
PERFORMANCE OVER THE
YEARS
 DIVIDEND PER SHARE EARNINGS PER SHARE

25

20

15

10

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
FUTURE GOALS
 ONGC
RRR (Reserve replacement ratio): The ratio
of reserve additions to production. Reserve
replacement is calculated by summing the total
reserves added over a five-year period. The
ratio is calculated by dividing replacement by
production over the same period.

NETWORTH: of the company has increased at

a CAGR of 15%. This can be attributed to the
higher capital expenditure which has
increased at a CAGR of 24% within the same
period
TURNOVER: is increasing at a CAGR
of 16.6% and net profit is increasing
17.8%. the increase in profit is despite the
loss the company is making due to high
subsidies. This highlights the internal
operational efficiency of the organization.
 MARKET SHARE

D/E: ONGC is almost a

zero debt company. This is
reflected in the D/E ratio
across the years. The
earnings have increased at
a CAGR of 17.8% which
can be mainly attributed to
the operational efficiency
of the company
Air India
 Incurring constant losses since 2005

 Operating Expenses
ATF – Almost 40% of revenue
Salary- Almost of 20% of revenue

 Annual wage bill for 31,000 employees running up to 3000

crore

 Operating ratio of 104.52 % against industry standard of

between 75 & 80
….Contd
 Revenue passenger carried has been constantly increasing
from 97-98

 Passenger load factor increased from 97-98 to 00-01 , then

constantly decreasing

 Expanding passenger traffic in Asia Pacific

 Operational performance

 Market leadership
Thank you