While sustained revival efforts have led to the turnaround of 14 public sector undertakings (PSUs) during the past financial year, working capital inadequacy, obsolete technology and lack of professional management continue to ail the functioning 26 units, mostly in the textile and traditional sectors.
The Public Sector Restructuring and Internal Audit Board (RIAB) review report for 2017-18 says the PSUs have registered a turnover of ₹2,978.54 crore and a net profit of ₹106.91 crore. The turnover has registered a 7.5% growth and profit has been posted against the loss of ₹80.69 crore recorded in the previous year.
The chemical sector contributes to 48% of the turnover and that was mainly due to the improved performance of Kerala Minerals and Metals Limited (KMML), Travancore Titanium Products and Travancore Cochin Chemicals Limited. Seven out of the five units in the sector are posting profit.
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Except for Transformers and Electricals Limited Kerala (TELK), all other three units in the electrical sector, Traco Cable Company Ltd, Kerala Electricals and Allied Engineering Company Ltd, United Electrical Industries Limited continue to be in the red. About 46% of the total turnover in the sector is from TELK, but the Kerala State Electricity Board’s delay in placing orders has affected its operation schedule.
Two out of the six units in the engineering sector, Steel and Industries Forgings Limited and Steel Industries Kerala Limited, are registering profit. The loss of four other companies in the sector had increased compared to the previous year.
Of the three units in the electronics sector, Kerala State Electronics Development Corporation is a holding firm and Keltron Component Complex Ltd and Keltron Electro Ceramics Limited are its subsidiaries. Their turnover has increased and the two subsidiaries have registered profit.
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According to the report, KMML tops the list of profit-making companies (₹195.78 crore), Kerala State Drugs and Pharmaceuticals and Kerala State Industrial Enterprises Limited also turned profitable during the past financial year. Eight units in the textile sector reported a loss of ₹76.76 crore against a turnover of ₹116.46 crore.
RIAB chairman M.P.Sukumaran Nair told The Hindu that the restructuring and revival initiatives have brought about a significant improvement in the performance of the PSUs and they are bound to record progress.
The financial outlay for PSUs has been enhanced from ₹287.35 crore to ₹297.35 crore in the current year.
“Lower capacity utilisation, outdated technology, demonetisation and GST have taken a toll on the textile sector that was still registering loss. Creative interventions being made to address such issues would help bring the sector out of the red,” says Mr.Sukumaran Nair.