According to a study by the financial institution on the performance of a sample of 200 companies directly assisted by it, the total income growth in these companies rose by 12.2 per cent, while cost of production increased by 11.3 per cent. Gross profits of these companies improved by 18 per cent, but impacted by a 23.5 per cent growth in interest costs, the companies recorded a net profit growth of only 12.2 per cent.

Sales turnover of most of the industry groups increased during the period October-December 1998, with food products showing a sales growth of 59.6 per cent followed by fertilisers (31.4 per cent), dry and wet batteries (30.8 per cent), motorcycles and scooters (27.6 per cent), paper and paper products (27 per cent), IDBI said in a statement here.

Electronics, petro-products, cotton textiles and spinning, pharmaceuticals and other chemicals also posted above average growth, the statement said.

The distribution of sample companies based on a turnover reveals that the number of large companies with a turnover of over Rs 500 crore remained at the previous year's level of five.