Auto, Pharma, Tyre Sectors Show Higher Growth In Profit During Q1

Updated: Aug 26 2002, 05:30am hrs
A sectoral analysis reveals that the auto & ancillary, pharmaceuticals and tyres & tubes sectors were the best performers during the period April-June 2002. The auto & ancillary sector (39 units) posted the highest rise in net profit (PAT), with a 132.8 per cent rise, from Rs 180.24 crore in April-June 2001 to Rs 419.63 crore in April - June 2002.

This is attributed to the turn around of Telcos net profit from the loss of Rs 98.90 crore during April-June 2001 to the profit of Rs 28.03 crore during April - June 2002, and Hero Hondas impressive growth in net profit, from Rs 78.81 crore to Rs 139.16 crore. Both these companies were the major contributors to profit growth in this sector.

The net sales of the auto & ancillary industry also increased by 18.9 per cent to Rs 8,962 crore during April - June 2002 from the level of Rs 7,537 crore during April - June 2001. In the case of pharmaceuticals, the total net profit figure of 39 companies rose by 46.94 per cent to Rs 615.97 crore during April-June 2002 from Rs 419.21 crore during April-June 2001.

Total sales of this group also increased by 23.9 per cent during the same period. In this sector Dr Reddys showed a significant growth in net profit. The net profit of the company increased by 49.8 per cent to Rs 80.14 crore during April-June 2002 from the level of Rs 53.50 crore during April - June 2001.

The sales of the company also increased by 35.58 per cent during same period. Another company Cipla also showed better performance during Q1. Its sales and profit increased by 34.68 per cent and 36.5 per cent respectively during Q1.

Among the 30 industry groups, significant growth in net sales during April - June 2002 was observed in the case of construction (44.1 per cent), gems & jewellery (53.4 per cent), iron & steel (30.5 per cent), sugar (27.3 per cent) and trading (13.7 per cent).

A significant drop in sales was observed in the case of NBFC (-14.1 per cent), hotels (-19.4 per cent), shipping (-31.9 per cent) and tea (-3.9 per cent).

Food, processing and trading sectors witnessed the highest growth in other income during April-June 2002. Sixteen industry groups showed a decline in other income during first quarter.

Mention may be made of auto & ancillary (-38.7 per cent), construction (-54.8 per cent), engineering others (-59.1 per cent), shipping (-32.5 per cent), telecomm (-49.8 per cent) and tyres & tubes (-45.1 per cent). Ten industrial group registered a decline in operating profit. Significant among them are NBFC (-34.3 per cent), hotels (-61.5 per cent), shipping (-32.8 per cent) and sugar (-47.3 per cent).

Oil Drilling & allied services with a growth of 112.7 per cent, is the only industry which more than doubled its operating profit during the first quarter. In gross profit, six industries witnessed an increase of 50 per cent or more during the quarter April - June 2002. Mention may be made of auto & ancillary, chemicals others, oil drilling & allied services, iron & steel, textiles and tyres & tubes.

However, 8 industries have recorded lower gross profits during April-June 2002. Six industries, which showed more than 50 per cent increase in PBT during April-June 2002. Mention may be made of auto & ancillary, engineering others, oil drilling & allied services, pharmaceuticals and tyres & tubes.

However, 10 industries have recorded a lower PBT during April-June 2002. In the case of Profit after tax (PAT), significant loss made by the industries were hotels (-Rs 11.39 crore), iron & steel (-Rs 78.35 crore) and sugar (-Rs 12.74 crore).

As many as nine industries recorded lower net profit during April-June 2002. Significant among them were cement & products (-93.5 per cent), construction (-25.0 per cent), electrical goods (-27.2 per cent), paper (-76.1 per cent), shipping (-56.3 per cent) and telecomm (-44.5 per cent). On the other hand, three industries namely auto & ancillary, oil drilling & allied service and tyres & tubes witnessed an increase of 100 per cent or more during Q1.

PAT formed less than 1 per cent of sales in the case of cement & products, fertilisers, NBFC and paper during April-June 2002. A significant increase in the ratio during first quarter was witnessed in the case of auto & ancillary (2.39 per cent during April-June 2001 to 4.68 per cent during April-June 2002), oil drilling & allied services (1.19 per cent to 3.28 per cent), tea (4.74 per cent to 7.32 per cent) and tyres & tubes (1.79 per cent to 3.14 per cent).

An opposite trend can be seen in the case of aluminium (20.93 per cent during April-June 2001 to 17.36 per cent during April-June 2002), cement & products (6.65 per cent to 0.45 per cent), construction (9.95 per cent to 5.18 per cent), paper (4.23 per cent to 0.88 per cent), shipping (16.20 per cent to 10.39 per cent) and telecomm (15.52 per cent to 7.69 per cent).

The highest EPS was observed in the case of cigarettes (Rs 13.31) followed by aluminium (Rs 9.82), pharmaceuticals (Rs 7.94), trading (Rs 7.72), diversified and computers (Rs 5.82).