India Inc Raises Toast To Good Times In Q2

Updated: Nov 3 2003, 05:30am hrs
The feel-good factor is here for real. Glance through the impressive figures posted by Corporate India this September quarter, and you will know why. On an aggregate, net profit registered by 666 major companies, which have announced their results for the quarter so far, has climbed a smart 41.04 per cent over the corresponding period of the last fiscal. And sales grew 13.44 per cent during the same period. The sharp increase in aggregate net profit is mainly on account of a significant rise in net profit of some major companies like Tata Motors, Maruti Udyog, Ashok Leyland, Neyveli Lignite, Andhra Bank, Larsen & Toubro, Philips India, Balrampur Chini, Titan Industries, IndusInd Bank and Polaries Software. Tata Motors net profit increased by 251.5 per cent to Rs 206.68 crore during July-September 2003 (from Rs 58.8 crore during July-September 2002).

Its sales rose 46.22 per cent to Rs 3,763.23 crore during the quarter, while other income saw a 470.93 per cent rise. Ashok Leyland is another notable example. The company registered a sharp 156.56 per cent increase in net profit and a 33.97 per cent rise in sales to Rs 962.18 crore during the second quarter.

Among public sector units, Neyveli Lignite Corporation has performed better. While its sales went up by 17.93 per cent to Rs 609.72 crore, net profit registered a rise of 121.24 per cent to Rs 377.66 crore and other income zoomed 685.91 per cent to Rs 381.40 crore.

In the banking sector, Andhra Banks income grew 2.16 per cent to Rs 562.50 crore and net profit 105.18 per cent to Rs 136.98 crore during the quarter under review. Other income posted a 74.86 per cent rise to Rs 207.89 crore.

Among pharma firms, Aurobindo Pharma posted a 14.48 per cent increase in sales to Rs 348.99 crore. Its net profit jumped 56.68 per cent to Rs 32.15 crore.

Electrical goods company Philips India showed a significant 82.69 per cent increase in net profit. While its sales climbed 2.36 per cent to Rs 401.60 crore, other income declined 25.93 per cent during the quarter under review.

There are some major companies whose performances have been adversely affected in terms of net profit. Mention may be made of BHEL, VSNL, Apollo Tyres, Cipla, Ceat, Castrol, Tube Investments and Patel Engineering.

VSNLs net profit declined 80.2 per cent to Rs 48.7 crore during the September quarter (Rs 245.9 crore in the year-ago quarter). The companys sales also decreased by 37.85 per cent to Rs 775.5 crore.

Tube Investments also fared poorly with net profit coming down 63.27 per cent to Rs 6.05 crore (Rs 16.47 crore) and sales by 12.99 per cent.

Significant losses were registered by a few companies during the quarter under review. A mention may be made of Mangalore Refinery (Rs 45.37 crore), Century Textiles (Rs 5.06 crore), EIH (Rs 17.03 crore), Hyderabad Inds (Rs 2.95 crore), Mysore Cements (Rs 24.54 crore), Burroughs Wellcome (Rs 34.66 crore), Mangalam Cement (Rs 29.07 crore), Sesa Goa (Rs 6.83 crore), Morarajee Goculdas (Rs 19.80 crore) and Ramco Systems (Rs 12.29 crore).

Overall, total sales of 526 major companies rose by 13.44 per cent to Rs 1,59,547 crore during the second quarter (Rs 1,40,648 crore). Significant growth in sales was seen in the case of STC, RCF, Rajesh Exports, Moser Baer, Gammon India, Welspun Gujarat Stahl, Shree Precoated Steel and Flat Products.

Other income of the 526 companies increased by 36.80 per cent to Rs 11,739 crore (Rs 8,581 crore) and operating profit by 11.65 per cent to Rs 52,420 crore (Rs 46,951 crore). SAIL, Maruti Udyog, Neyveli Lignite, Welspun Gujarat Stahl, Balrampur Chini and United Phosphorous posted more than 100 per cent increase in operating profit.

Gross profit too went up by 26.28 per cent to Rs 33,009 crore (Rs 26,139 crore). Profit before tax (PBT) showed a growth of 32.69 per cent to Rs 22,640 crore (Rs 17,063 crore).

Profit margin (PAT to sales) of the 526 firms rose to 10.56 per cent (8.49 per cent). A similar trend can be seen in the case of Tata Motors (2.28 per cent to 5.49 per cent), Maruti Udyog (1.84 per cent to 5.75 per cent), PNB (10.91 per cent to 15.57 per cent), Bank of Baroda (8.87 per cent to 16.98 per cent) and Neyveli Lignite (33.02 per cent to 61.94 per cent).

An opposite trend can be seen in the case of VSNL (19.71 per cent to 6.28 per cent), Cipla (18.68 per cent to 14.37 per cent), Castrol India (12.16 per cent to 8.57 per cent), Mahavir Spg (6.46 per cent to 3.45 per cent) and Ucal Fuel Systems (19.36 per cent to 11.31 per cent).

Average EPS of the 526 companies increased by 41.04 per cent to Rs 4.71 (Rs 3.34 during July-September 2002).