The Return on Equity (ROE) for 58 SPSEs stood at 32.37 per cent in 2023, a notable rise from 10.32 per cent in the previous year. This increase was driven by profit growth, which surged from Rs 654 crore in 2022 to Rs 1,368 crore in 2023.

Additionally, for the first time in three years, the Return on Capital Employed (ROCE), a key measure of profitability and capital efficiency, turned positive.

However, despite the overall financial improvement, 66 SPSEs continued to report losses, amounting to Rs 1,873 crore. This was a decrease from the Rs 4,065 crore loss recorded by 63 SPSEs in 2022.

Two entities, Kerala State Road Transport Corporation (KSRTC) and Supplyco, accounted for the majority of the losses, contributing Rs 1,327 crore to the total deficit.

The losses reported for these entities were based on financial audits dating back to 2015-16 for KSRTC and 2017-18 for Supplyco. KSRTC, in particular, has a significant backlog, with its accounts pending from 2016-17 to 2022-23.