Computer, shipping, chemicals inorganics show higher net in 00-01

Pradip Kumar Dey FE Research Bureau

The sector-wise analysis of 1,612 companies has shown a prominent growth in net profit in the case of chemicals inorganics, metal (non-ferrous), steel (tubes & pipes), computer (hardware and software), industrial explosives, shipping and steel (strips/bars/wires) during 2000-01.

Of the 97 sectors taken up for study, the net profit of industrial explosives (comprising two companies) increased by 777.1 per cent to Rs 58.24 crore during 2000-01 from Rs 6.64 crore during 1999-00. The net sales figure of the group also increased by 13.9 per cent to Rs 204.13 crore during 2000-01.

In the case of shipping, the total net profit figure of 10 companies rose by 146.1 per cent to Rs 691.51 crore from Rs 280.98 crore. The main income figure of this group also increased by 15 per cent during the study period.

Among the 97 sectors, significant growth in net sales during 2000-01 was observed in the case of computer hardware (79.9 per cent), computer software (48 per cent), electricity (41.4 per cent), mining (82.3 per cent), office equipment (64.7 per cent) and telecommunications (63.9 per cent).

A significant drop in sales was observed in the case of industrial gases (23.9 per cent), jute textile/silk/woollen (20.3 per cent), moulded luggage (22.0 per cent), tea (18.9 per cent) and tranmission line tower (31.2 per cent).

In the case of other income, the highest growth was noticed in the case of four wheelers (820.9 per cent) followed by computer hardware (325.4 per cent). 46 sectors showed a decline in other income.

Operating profits of 36 industrial groups registered a decline in operating profit. Significant among them are breweries & distilleries (30.8 per cent), coffee (49.7 per cent), dyes & dyes intermediates (52.5 per cent), heavy vehicles (53.9 per cent), moulded luggage (55.1 per cent), rubber & products (40.4 per cent) and transmission line tower (44.6 per cent).

But industrial explosives (309.2 per cent) and office equipment (150.0 per cent) were the only two sectors which more than doubled their operating profit during the year 2000-01.

In gross profit, 26 sectors including cotton textiles, industrial explosives, plastics, shipping, steel strips/bars/wires, steel tubes&pipes and textiles spinning and weaving witnessed an increase of 100 per cent or more.

Five sectors, which more than doubled their profit before tax (PBT), included computer hardware (129.9 per cent), industrial explosives (795.0 per cent) shipping (162.3 per cent) and steel tubes&pipes (175.7 per cent).

In the case of profit after tax (PAT), significant losses were made by sectors are alkalies & chem (Rs 24.20 crore), breweries & distilleries (Rs 47.84 crore), coffee (Rs 16.76 crore), cotton textiles (Rs 235.32 crore), domestic appliances (Rs 79.61 crore), dyes & dyes intermediates (Rs 51.37 crore), fasteners (Rs 19.15 crore), four-wheelers (Rs 14.98 crore), heavy vehicles (Rs 425.06 crore), man-made fibres (Rs 65.01 crore), sponge iron/pig iron (Rs 105.17 crore), steel (hr/cr/gp/cg) (Rs 401.63 crore) and transmission line tower (Rs 61.26 crore).

As many as 27 sectors recorded lower net profit during 2000-01. Significant among them were cables telephone powers (60.0 per cent), chemicals organic (50.6 per cent), other chemical products (59.4 per cent), rubber & rubber products (83.4 per cent), tea (49.5 per cent) and tyres & tubes (73.6 per cent).

On the other hand, nine sectors witnessed an increase of 100 per cent or more in net profits during the study period. Among the 97 sectors, the top five in respect of PAT to sales ratio during 2000-01 were industrial explosives (28.53 per cent), computer education (24.43 per cent), aluminium (22.31 per cent), entertainment (21.01 per cent) and information technology (20.77 per cent).

A significant increase in the ratio was recorded by chemicals inorganics (1.36 per cent to 4.22 per cent), industrial explosives (3.71 per cent 28.53 per cent), oil drilling (14.33 per cent to 19.66 per cent), shipping (6.39 per cent to 13.68 per cent) and steel tubes & pipes (0.25 per cent to 1.70 per cent).

An opposite trend was seen in the case of financial institutions (17.23 per cent to 11.46 per cent), forgings (10.28 per cent to 6.23 per cent), lubricants (14.72 per cent to 9.10 per cent), rubber & products (7.90 per cent to 1.41 per cent), tea (12.49 per cent to 7.78 per cent) and two-wheelers (10.31 per cent to 5.42 per cent).
The highest EPS was noticed in the case of aluminium (Rs 54.54) followed by tractors (Rs 38.23) and tobacco (Rs 37.82). The highest growth in EPS was observed in the case of industrial explosives (777.1 per cent) followed by steel tubes & pipes(694.7 per cent) and metal (non-ferrous) (403.4 per cent).