PSUs cut dividend 2nd time in a decade as cash reserves continue to dwindle

The combined dividend pay-out by state-owned firms, excluding banks, down 9.3% in 2017-18; Combined cash reserves at all-time

The combined dividend payout by  public sector undertakings (PSUs), excluding banks and financials, declined nearly 10 per cent in 2017-18. This was the first time since 2014-15 — and only the second instance in a decade — when the dividend kitty shrank over the previous fiscal year. 

The cut in equity dividends paid by PSUs was despite the improvement in their profitability, especially for oil companies and metal producers. The combined net profit of listed non-financial PSUs was up 9.5 per cent in 2017-18 (FY18) to Rs 1.2 trillion, two-thirds of which was accounted for by oil and gas companies.