Government hit’s Jackpot: India’s most profitable and top tax-paying PSUs in FY23

The 54 PSU stocks comprising the BSE PSU index have collectively earned Rs 3.40 lakh crore net profit in FY23 registering a 10 per cent annual profit growth from Rs 3.09 lakh crore in FY22.

In the recently concluded results season for the quarter ended March FY23, A number of PSUs have impressed Dalal Street with their strong bottom-line numbers. The data from Ace Equity showed that, In the 54 stock’s BSE PSU index, 51 government-owned companies have posted profits on an annual basis while only three PSU companies have posted losses in FY23. With net profit surging 57 per cent to Rs 55,648 crore State Bank of India emerged as the most profitable PSU in FY23. The country’s biggest lender has also paid taxes of Rs 18,840 crore. These PSUs with improving profitability and significant tax payments contribute substantially to filling government coffers. Here are the details of the country’s top 10 most profitable and tax-paying PSUs.

Life Insurance Corporation of India is the second most profitable PSU. The net profit of India’s largest insurer LIC has increased 773 per cent to Rs 35,997 crore in FY23 from Rs 4125 crore in FY22. The insurance behemoth has also paid taxes of Rs 5,466 crore in FY23. LIC is followed by Oil & Natural Gas Corporation ‘ONGC’. The petro giant has witnessed a 22 per cent decline in net profits to Rs 35,440 crore in FY23 from Rs 45,522 crore net profit in FY22. It has also paid Rs 10273 crore as taxes in FY23.

With Rs 28,165 crore net profit Coal India is at number four on the list. The net profit of the coal major has grown 62 per cent from Rs 17,358 crore in the last financial year. It paid taxes of Rs 9876 crore in FY23. It is followed by NTPC as the net profit has surged 1.4 per cent to Rs 16,912 crore from Rs 16,676 crore in the last fiscal. NTPC paid Rs 6,796 crore tax in FY23.

Some other top profit-earning PSUs in FY23 are Power Finance Corporation with net profit surging 13 per cent to Rs 15,889 crore, It is followed by Power Grid Corporation of India net profit of Rs 15,417 crore (profit declined 8 per cent), Bank Of Baroda net profit Rs 14,905 crore (growth 90 per cent), Canara Bank net profit Rs 11,255 crore (growth 84 per cent) and REC Ltd. with a net profit of Rs 11,167 crore (growth 11 per cent).

The 54 PSU stocks comprising the BSE PSU index have collectively earned Rs 3.40 lakh crore net profit in FY23 registering a 10 per cent annual profit growth from Rs 3.09 lakh crore in FY22. While tax collection from these PSUs has increased 8 per cent to Rs 1.01 lakh crore from Rs 93,749 crore in  the last financial year.