Interest expenditure rises 23% in 2010-11
However, the negative impact of higher interest rates on margins was offset to an extent by a jump in sales. The aggregate sales of 49 PSUs fell by 4.4% to R9.75 lakh crore during 2009-10 from the level of R10.21 lakh crore during 2008-09 and increased thereafter by 20.8% to R11.79 lakh crore during 2010-11.
The net profit of these PSUs increased by 34.5% to R77,449 crore during 2009-10 and further by 6.5% to R82,474 crore during 2010-11. The net profit-to-sales ratio increased from 5.64% during 2008-09 to 7.93% during 2009-10 and fell thereafter to 6.99% during 2010-11. And the interest-to-sales ratio declined from 1.72% to 1.21% during 2009-10 and marginally increased to 1.23% during 2010-11.
In 2010-11 the top five PSUs in terms of interest outflow were Indian Oil Corporation (IOC), NTPC, Power Grid Corporation, BPCL and Hindustan Photo Films (HPF). IOC, with an outflow of R2,980 crore, was the leader of the pack. Among others, HPF with R955 crore took the fifth position. IOC saw its overall consolidated borrowing rise by 16.9% to R57,837 crore during 2010-11 from R49,472 crore
Be the first to comment.