The industry league

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: Among the industries (80) studied, only one showed negative growth in their total income during 2006-07. Mention may be made of transport-airlines/travel agencies (-18.73%).

All the other 79 broad industry categories under which the FE 500 had been clubbed had positive growth to show.

Aggregates tend to conceal some real good or bad performances. Thus, even though mining/minerals/metals showed good income growth of 50.54%, Sterlite Inds grew at the higher rate of 57.56%.

The group average was also weighed up by the 112.14% income increase reported by Hindustan Zinc. The net profit of the group also increased by 50.70% during 2006-07.

Similarly, the electronic-consumer industry saw 51.89% income growth. But at least two electronic-consumer companies; namely Videocon Inds and Salora International—reported more than 50% increases. The net profit of the electronic-consumer group of companies increased by 118.41% to Rs 871.32 crore during 2006-07.

Among the industries studied, the best performers of the year were construction, aluminium and products, computer—software mega, pharmaceutical-Indian-Formulations and cement. The details of industry performance appear in the tables starting from page 66. Given below is a brief synopsis of the major gainers and losers of 2006-07.

Construction: The industry showed excellent results with positive growth rates in all financial indicators. While total income increased by around 53.08%, net profit went up by 74.52%. And the retained profit of the group increased by 55.47% to Rs 2879.97 crore during 2006-07. And the debt-equity ratio increased from 1.30 during 2005-06 to 1.47 during 2006-07. Unitech, Subhash Projects, Era Constructions, Ansal Prop & Infra, and Gammon (I) were among the best performers.

According to industry sources, India’s planned infrastructure spend of Rs 12.7 trillion is likely to be funded through a public-private mix.

The total investment in Indian infrastructure is estimated at $284 billion over the next five years. As a result, investment in infrastructure is expected to rise from 4.5% of the GDP to 8% by 2012.

Aluminium & Products: This industry reported significant growth in almost all financial indicators, with a net profit (NP) growth of 55.32% during the year 2006-07. The retained profit of this group also increased by 61.7% to Rs 4485.91 crore during 2006-07. The stars in the category were Madras Aluminium (117.1% growth in NP) and Hindalco (I) (54.89%). The debt-equity ratio of the group increased from 0.32 during 2005-06 to 0.37 during 2006-07.