On the other hand, operating profit of these 70 companies rose by 13.05 per cent to Rs 8,244 crore during 1998-99. Gross profit of the companies also rose by 4.28 per cent to Rs 5,046 crore in 1998-99, from Rs 4,839 crore in 1997-98. But profit before tax (PBT) fell by -1.82 per cent to Rs 3,390 crore in 1998-99. This has occurred probably due to the significant declines in PBT by companies like Zenith Ltd (-92.9 per cent), Zuari Industries (-76.8 per cent),Lakshmi Machine Works (-63-2 per cent), Visaka Industries (-60.4 per cent), and Jay Iron & Steel (-60.0 per cent). Though the aggregate sales of 70 companies rose by 7.89 per cent to Rs 34,752 crore during 1998-99 from Rs 32,211 crore during 1997-98. the PAT to sales ratio of these companies declined from 9.14 per cent to 8.39 per cent during 1998-99.

Of the 70 companies, 22 firms showed a decline in their gross profit; significant among them are Zenith Ltd (-79.6 per cent), Lakshmi Electri Cont (-77.9 per cent), Super Sales Agencies (-68.4 per cent), Zuari Industries (-61.9 per cent), Rossell Tea (-51.1 per cent), and Kutch Minerals (-50.0 per cent). Two companies--Aurobindo Pharma (120.2 per cent) and Alkyl Amines Chem (168.6 per cent)--more than doubled their gross profit.

In PBT, five companies--Prime Solvent Ext, Aurobindo Pharma, Ashiana Ispat, Alkyl Amines Chem, and BSL--have seen a rise of 100 per cent or more. Of these, Prime Solvent Ext showed the highest growth of 857.1 per cent during 1998-99.However, 20 companies have recorded a lower PBT during 1998-99. In the case of PAT, significant losses made by the companies during 1998-99 are Southern Iron & Steel (-Rs 33.38 crore) NRC Ltd (-Rs 25.45 crore), Wimco (-Rs 17.85 crore), Antifriction Bearings (-Rs 10.03 crore), and Lloyds Metals & Engg (-Rs 37.99 crore).

As many as 19 companies recorded lower net profits. Notable among them are Georg Fischer (-52.5 per cent), Visaka Industries (-60.5 per cent), Lakshmi Machine Works (-67.5 per cent), Zuari Industries (-70.5 per cent) , Zenith (-93.5 per cent), and Kajaria Ceramics (-54.6 per cent).

On the other hand, seven companies have witnessed an increase of 100 per cent or more. Mention may be made of Prime Solvent Ext, Aurobindo Pharma, Ashiana Ispat, South India Corpn, Alkyl Amines Chem, GP Electronics, and BSL. Among the 70 companies, the top five in respect of the PAT to sales ratio during 1998-99 were Asian Hotels (34.38 per cent), Coffee lands (34.33 per cent), Sri Adhikari Brothers (22.71 percent), Leading Edge Systems (20.97 per cent), and Chambal Fert (18.33 per cent). PAT formed less than 1 per cent of sales during 1998-99 in the case of Ashiana Ispat, Zenith Ltd of Jay Iron & Steels.

A significant increase in the ratio during 1998-99 from the level of 1997-98 was recorded by Chambal Fertiliser (14.73 per cent in 1997-98 to 18.33 per cent in 1998-99), Sri Adhikari Brothers (17.50 per cent to 22.71 per cent), Alkyl Amines Chem (7.90 per cent to 17.31 per cent), Elgitread (India) (13.03 per cent to 17.14 per cent), Pidilite Industries (9.29 per cent to 11.31 per cent), and BSL (0.65 per cent to 2.54 per cent).

A reverse trend can be seen in the case of Georg Fischer (13.03 per cent in 1997-98 to 8.29 per cent in 1998-99), Hatigor Tea Estates (15.27 per cent to 10.87 per cent), Rossell Tea (19.88 per cent to 9.79 per cent), Zenith Ltd (5.14 per cent to 0.45 per cent), Asian Hotels (46.79 per cent to 34.38 per cent), Lakshmi Machine Works (5.04 per cent to 2.05 per cent), Vinyl Chemicals(10.29 per cent to 4.92 per cent) and Kajaria Ceramics (10.89 per cent to 3.48 per cent).

Aggregates

This week's addition of 70 companies with the previous week's 356 firms' results also showed an increase in sales. The total of 426 companies' sales increased by 10.89 per cent to Rs 173,392 crore during 1998-99, from Rs 156,357 crore during 1997-98. These companies have posted a rise of 17.12 per cent to Rs 46,958 crore in operating profit during 1998-99, from Rs 40,093 crore during 1997-98. The gross profit of these companies also increased by 12.25 per cent to Rs 28,223 crore during 1998-99. One significant thing is that the growth of PBT and PAT is more or less the same, that is, around 7 per cent (PBT in 1998-99 is Rs 20,258 crore and PAT is Rs 16,169 crore). The ratio of the PAT to sales marginally declined from 9.65 per cent in 1997-98 to 9.32 per cent in 1998-99.

Quarterly performance

In the case of quarterly results, only 26 companies' fourth-quarter results are available duringthis week. Among the results collected, magnificient growth in sales was witnessed in the case of Arlem Breweries (153.3 per cent), Paintex Chem (35.0 per cetn), and Corporation Bank (31.7 per cent) during the the January-March '99 quarter, against the January-March '98 quarter. A reverse trend can be seen in the case Indian Link Chain (-74.6 per cent and Wimco (-19.9 per cent). On the profit front, significant growth in PAT was seen in the case of Sundaram Brake Linings (81.0 per cent), Alkyl Amines Chem (149.3 per cent), Forsento Resorts (95.6 per cent), and Dabur India (35.9 per cent). The net profit of Alkyl Amines Chem was Rs 3.34 crore (Rs 1.34 crore) for the quarter ended March '99. A significant drop in PAT was witnessed in the case of Georg Fischer Dias (-27.8 per cent), South India Corpn (-43.5 per cent), Kanthal India (-31.0 per cent), and Corporation Bank (16.1 per cent). A more than 20 per cent ratio (PAT to sales) was observed during the fourth quarter in the case of Alkyl Amines Chem (20.45per cent) and Leading Edge Systems (23.02 per cent).

A significant rise in the ratio during the last quarter of 1998-99, compared with the corresponding quarter of 1997-98 was noticed in the case of Sundaram Brake Linings, Alkyl Amines Chem, and Fonsento Resorts. An opposite trend can be seen in the case of Georg Fischer Disa, Kanthal India, Arlem Breweries, Corporation Bank, and Leading Edge Systems. Among the 26 companies, only one firm, namely, South India Corpn showed less than 1 per cent ratio of PAT to sales during the January-March '99 quarter.