Performance of Indian Navratna companies

Department of Public Enterprises (DPE), an organizing body of government of India confers status of Navratna to some state owned companies, Central Public Sector Enterprises (CPSE). As of today there are 18 Navratna companies. The selection criterion is based on financials like net worth, revenues, net profits, etc. To be specific, there are six parameters to be evaluated by DPE when assigning Navratna title to a company. Each company is benchmarked on

(1) ratio of employee cost to the production cost,
(2) ratio of net profit to net worth,
(3) ratio of PBDIT to revenues,
(4) ratio of PBDIT to capital employed,
(5) EPS, and
(6) relative performance in its sector

Below is the performance of 18 Navratna companies in the FY08.

Figures in billion rupees	Block Assets	Sales	Net Profit
ONGC	1232.2	598.5	167.0
IOCL	568.3	2467.6	71.9
NTPC	533.7	370.9	74.2
Power Grid	354.2	46.1	16.0
SAIL	309.2	397.7	73.0
BPCL	215.0	1102.1	15.5
HPCL	195.7	1052.2	12.7
GAIL	169.6	180.1	26.1
MTNL	158.4	47.2	6.1
NALCO	91.4	50.2	16.3
SCI	67.4	37.3	8.1
HAL	52.1	86.2	16.3
BHEL	44.4	194.9	28.6
Bharat Electronics	14.3	40.6	8.1
NMDC	14.2	57.1	32.5
PFC	3.7	50.6	12.1
Coal India	3.5	2.7	17.1
REC	0.8	35.4	8.6
Composite	4,028	6,817	610

Acronym expanded:

BHEL	Bharat Heavy Electricals Limited
BPCL	Bharat Petroleum Corporation Limited
GAIL	(erstwhile) Gas Authority of India Ltd
HAL	Hindustan Aeronautics Limited
HPCL	Hindustan Petroleum Corporation Limited
IOCL	Indian Oil Corporation Limited
MTNL	Mahanagar Telephone Nigam Limited
NALCO	National Aluminium Company Limited
NMDC	National Mineral Development Corporation Ltd.
NTPC	National Thermal Power Corporation Ltd
ONGC	Oil & Natural Gas Corporation Limited
PFC	Power Finance Corporation Limited
REC	Rural Electrification Corporation Limited
SCI	Shipping Corporation of India Limited
SAIL	Steel Authority of India Limited

ONGC is the biggest in terms of assets and profits whereas IOCL has the highest turnover.

Navratna status comes with a great degree for these state run firms. Also, its government endeavour to support these Navratnas to grow up to global giant.