Central public sector undertakings (PSUs) performed badly in 1990-91 with their net profit declining sharply by 37.28 per cent compared with the previous year.
According to the 1990-91 annual report of the department of public enterprises, the 189 central public enterprises earned a net profit of Rs. 2,730.27 crore during 1990-91 against the net profit Rs. 3,748 crore in 1989-90.
The report tabled in the Parliament said the net profit earned was much lower than the targeted Rs. 3115.09 crore during 1990-91.
It said significant variations from the targeted profit occurred in the petroleum cost and fertilisers and heavy engineering sectors.

It said ten out of the 20 non-oil sectors had shown improvements in their profitability during the year.

The report said that decline in net profit during 1990-91 was mainly attributable to payment of arrears arising out of wage revision during the year amounting to Rs.3000 crore loss due to sharp upward revision in the exchange rate of various foreign currencies amounting to Rs. 600 crore and the Gulf crisis.

The report said 65 enterprises had incurred cash losses in 1990-91 amounting to Rs. 1500.23 crore against a cash loss of Rs. 1356.69 crore incurred in the previous year by same enterprises.

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