The increase, however, has been substantially boosted by the presence of private and public sector banks like HDFC Bank, UTI Bank, Allahabad Bank and South Indian Bank and some great performers in cement sector like Prism Cement and Binani Cement.
Ved Prakash Chaturvedi, managing director of Tata Asset Management, said: Key results in the banking space have shown the impact of the rapid business and credit growth that we have seen in the past and the expansion in interest rates. Because of these two reasons, and the additional non-fund based income, the results from the banking sector have been positive.
Among the other performers responsible for boosting the overall profits growth rate of these early birds were TCS, Infosys Technologies, Petronet LNG, Power Finance Corporation, Jubilant Organosys, Finolex Industries, Zee Entertainment Enterprises, Hindustan National Glass, TRF Ltd, Torrent Cables and Skumars Nationwide.
The net profit of Finolex Industries increased by 156.2% to Rs 24.49 crore during April-June 2007 (Rs 9.56 crore). The sales of the company also increased by 21.7% during the quarter. On the other hand, the net profit of Jubilant Organosys increased by 191.9% to Rs 138.4 crore (Rs 47.4 crore) during April-June 2007. The companys sales increased by 26.82% to Rs 454.90 crore.
In the banking sector, UTI Banks performance was significantly good. While main income increased by 61.1% to Rs 1,537 crore, the net profit increased by 45.1% to Rs 174.89 crore during April-June 2007.
Allahabad Bank is a public sector bank which registered a sharp 38.63% increase in main income to Rs 1,440.46 crore and a 56.3% rise in net profit to Rs 200.40 crore. In cement sector, major companies results are not out but prism cement showed 20.97% increase in sales and 82.52% increase in net profit during April-June 2007. Binani Cement also showed 12.43% and 33.34% growth in sales and net profit respectively.