CMIE report shows 13% growth in MP-based firms

Bhopal, July 15: Companies pre-dominantly based in Madhya Pradesh recorded a 13 per cent growth in their sales during 2000-01 even as on aggregate basis, these companies have reported losses as against profits in 1999-00.

According to the first issue of monthly review of Madhya Pradesh economy brought out by the Centre for Monitoring the Indian Economy (CMIE) financial performance of state-based listed companies compares poorly with the performance of all listed companies in 2000-01.

The observations are based on the aggregate results of five large Madhya Pradesh-based listed companies.

While all listed companies reported a smart 39 per cent growth in their profit after tax (PAT), these sample companies have reported aggregate loss of Rs 39 crore.

In 1999-00, these companies had reported aggregate profit of Rs 19 crore and growth in sales was around 14 per cent, which was more or less the same as reported by all listed companies.

Ruchi Soya is the largest company in the sample as during the year ended March 2001, with 29 per cent growth in its sales. During 1999-00, its sales was Rs 1,922 crore and this increased to Rs 2,477 crore during 2000-01.

The company recorded equally impressive growth in its PaT which increased to Rs 25.1 crore from Rs 19.8 crore in 1999-00
Another major company from the state which announced its financial results was Madhya Pradesh - Glychem and its sales increased to Rs 535 crore in 2000-01 from Rs 457 crore in 1999-00 which is a 17 per cent growth.

Glychem’s PAT which had dropped by 10 per cent in 1999-00, grew by 10 per cent in 2000-01 to Rs 4.7 crore.

An increase in the losses of Prism Cement and Vippy Industries as also the sharp fall in the profits of Mara Overseas were the major contributors to the overall losses of the sample companies, according to the review.

National Steel Industries has an reported 18 per cent increase in its sales to Rs 520 crore.

The growth in its PAT was relatively slower at 13 per cent to Rs 4.28 crore.

-- PTI