Cement, telecom coast to Q1 pole position

Mumbai, July 30 | Updated: Jul 31 2006, 06:14am hrs
The cement industry hogged the limelight in the April-June quarter after it topped the profit charts with a 203% rise in net profit compared with the same quarter last fiscal. An FE analysis spread across 33 industrial sectors comprising 743 companies also found the telecom sector a close second with a 181% jump in net profit, followed by the fertilisers industry (168%).

Of the 33 sectors taken up for the study, four had posted over 100% rise in profit, while 11 clocked 50% during the quarter.

Across sectors, 88 companies posted an increase of 200% and above in their net profit. The net profit of 24 companies rose 150-200%, that of 49 companies 100-150% and of 97 companies, 50-100%.

The net profit of the cement sector and allied products (comprising 20 major companies) jumped 202.9% to Rs 1,275 crore during April-June from Rs 421 crore for the same period last year. The net sales of the group increased 41.3 % to Rs 5,669 crore in April-June 2006.

Hitesh Agrawal, analyst at Angel Broking, said, Strong demand on the back of intense housing and infrastructure development activities and 95%-plus capacity utilisation have created a favourable environment for cement manufacturers.

For telecom, the net profit of eight companies rose 180.7 % to Rs 939 crore from Rs 334 crore. Sales also increased by 52.7% during the period. For fertilisers, the net profit figure of nine major companies went up 168% to Rs 636 crore during April-June 2006 from Rs 237 crore in April-June 2005. The total sales of this group rose 45.9% to Rs 3,176 crore during April-June 2006.