What's fueling the sharp rise in PSU profitability over the past five years?

The highest net profit growth was reported by the pesticides companies at 173.5%, followed by medical services at 171.3% and metals at 92.2%. The highest net profit growth was reported by the pesticides companies at 173.5%, followed by medical services at 171.3% and metals at 92.2%. ET 500 rankings have seen the continuation of one trend: improved financial health of public sector undertakings (PSUs). There are over 50 central and state government-run companies in the latest ET 500 list. At the aggregate level, the share of net sales of the PSU pack rose marginally to 31% in FY25 from 29.8% in FY19. In net profit terms, however, the metric has sharply expanded to 30.7% from 17.9%, reflecting improved profitability. The EBIT margin of PSUs rose to 30.4% in FY25 from 24.2% in FY19. For the non-PSU sample, EBIT margin improved to 22.1% from 18.5%. Aggregate net sales of the PSU pack in the ET 500 increased at a five-year compounded annual growth rate (CAGR) of 14.8% in FY25, while net profit grew by 39.5% annually during the period. For non-PSU companies, the annual growth rate for sales was lower at 12.4%, and net profit at 31.4% during the period under review. On the sectoral front, gems & jewellery companies recorded the highest yearon-year revenue growth of 44.2% in FY25, aided by rising prices of precious metals. Consumer durables companies followed with 39.6% top-line growth, and e-commerce companies at 26.7%. The highest net profit growth was reported by the pesticides companies at 173.5%, followed by medical services at 171.3% and metals at 92.2%. (What's moving Sensex and Nifty Track latest market news , stock tips , Budget 2025 , Share Market on Budget 2025 and expert advice , on ETMarkets . Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today . Top Trending Stocks: SBI Share Price , Axis Bank Share Price , HDFC Bank Share Price , Infosys Share Price , Wipro Share Price , NTPC Share Price (You can now subscribe to our ETMarkets WhatsApp channel ) (What's moving Sensex and Nifty Track latest market news , stock tips , Budget 2025 , Share Market on Budget 2025 and expert advice , on ETMarkets . Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today . Top Trending Stocks: SBI Share Price , Axis Bank Share Price , HDFC Bank Share Price , Infosys Share Price , Wipro Share Price , NTPC Share Price

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