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PERFORMANCE OF PUBLICSECTOR 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


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INTRODUCTION

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

y

There are 277 Central Public Sector undertakings in India.

y 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, WestBengal 35 and Others 7


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PSUS

y SAIL

Steel Authority of India (SAIL) is the largest steel producer inIndia.

y ONGC

Oil and Natural Gas Corporation(ONGC) was set up in1956

y AIR INDIA

Air India is Indias national Airline.


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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.


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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 indias GDP.


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STEEL AUTHORITY OF INDIA LTD.

y Steel Authority of India (SAIL) is the largest steel producerin India

y

In 2008

, SAIL ranked 21st among the steel producingcompanies with an amount of 13.7 mmt.

y In 2007-08, its revenues stood at Rs.45, 685 crore, morethan twice the sales of Tata Steel, the second largest companyin the industry


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EXPANDING HORIZON

y Hindustan Steel Private Limited was set up on January19, 1954

y 1972 -The Ministry of Steel and Mines drafted a policy

statement to evolve a new model for managing industryformation of Steel Authority of India Ltd

y Till 1990, the Indian steel industry operated under aregulated environment with insulated markets and largescale capacities reserved for the public sector


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y 1992 - onset of liberalization and the Indian economy

was opened to the world

y The late 1990s saw the expansion of the production

capacities of SAIL. This was partly done through externalborrowing


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PERFORMANCE OVER THE YEARS


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0

5

10

15

20

25

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

DIVIDEND PER SHARE EARNINGS PER SHARE


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FUTURE GOALS


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ONGC

RRR (Reserve replacement ratio): The ratioof 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 byproduction 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


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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 internaloperational efficiency of the organization.


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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


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Air Indiay Incurring constant losses since 2005

y Operating Expenses

ATF Almost 40% of revenueSalary- Almost of 20% of revenue

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

y Operating ratio of 104.52 % against industry standard of between

75 & 80


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.Contdy Revenue passenger carried has been constantly increasing from

97-98

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

constantly decreasing

y Expanding passenger traffic in Asia Pacific

yOperational performance

y Market leadership


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Thank you

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