Disinvested PSUs & their Profit/Loss Journeys: Part II - 2013-14 to 2018-19
Sai Krishna Muthyanolla
April 11, 2020
In an earlier article, we looked at disinvestment history of various governments and the amounts earned through them. In this story, we look at the individual companies and their status at the time of disinvestment from 2013-14 to 2018-19.
In Part -I, we looked at whetherthe Public Sector Undertakings disinvested during 2004-05 to 2012-13 wereincurring profit or loss around the year of their disinvestment. In thisarticle, we will look at the same for period 2013-14 to 2018-19.
Previous articles by Factly have outlinedthe various approached to disinvestment.
Year-wise Disinvestments
Now, let’s take a look year-wise break-up ofdisinvestments from 2013-14 to 2018-19. In the following table, the mode andtype of transaction describes the way in which disinvestment was carried out(broadly discussed in previous articles). Residual equity with governmentdescribes the post-transaction equity of the government in the said PSU.
The data is sourced from the Department of Public Enterprises, from their Annual Year Books and Public Enterprises Survey Reports. s
Are these PSUs profit or loss making?
Now, let’s look atthe trend of profit and loss for the disinvested PSUs. In the following table,the profit and loss data has been recorded for three consecutive years aroundthe given year of disinvestment. All profit values are recorded as (+) entriesand loss values as (-) entries.
*Data not available inPublic Enterprise Survey Reports.
There are a fewnotable observations:
Featured Image: Disinvested PSUs