Dividend Patterns by PSUs in India - July, 2009

Abstract

Despite the concerns of economic slowdown, the listed PSU companies have fared relatively quite well in terms of their PAT (Profit After Tax) performance during the financial year 2008-09, in comparison to the financial year 2007-08. The PAT levels have shown 1.4% growth in FY 2008-09 in comparison to FY 2007-08. Albeit it may be small, but still they have posted growth in PAT levels.This may be attributable to the stable revenue streams, strong balance sheets, tried-and-tested business models. Afterall, crisis is the litmus test of the character; and the listed PSUs have displayed it thoroughly during these trying times of economic slowdown.Besides the impressive performance at PAT levels, one more point to note down is that the dividend levels declared by the listed PSUs have went up from Rs. 21,803 Crores in FY 2007-08 to Rs.23,238 Crores in FY 2008-09, indicating a growth of about 6.6%.So, the government will be receiving its share of dividend of about Rs. 17,316 Crores in FY 2008-09, as against Rs. 16,386 Crores of dividend in FY 2007-08, indicating an additional dividend of about Rs. 930 Crores. This underlines that the coffers of the government won't get hurt due to the economic slowdown, rather they will get more dividend than last year.