India Inc’s Q1 losses rise 166.5%

India Inc registered a marginal increase in net profit during the quarter ended June 30, 2010. However, the losses registered were significantly high. An FE study of a sample of 2,800 listed companies (excluding banks and NBFCs) says that around 692 companies (24.7%) made losses during the quarter. This is a 34.9% decrease from the number reported during the same period last year.

The number of loss-making companies was the lowest over the last five quarters. Refining companies contributed 62% of the total loss amount during the quarter. The number of loss-making companies was 1,063 during the April-June quarter 2009, 974 during July-September ’09, 894 during October-December ’09 and 1,028 during January-March ’10.

Though the number of companies has decreased, the cumulative loss has increased significantly. The loss amount has risen 166.5% to Rs 11,388 crore during the quarter from Rs 4,273 crore during April-June? 09.

The cumulative sales of 692 loss making companies was Rs 1.82 lakh crore, compared with cumulative sales of 1,263 loss-making companies of Rs 26,810 crore last corrosponding period.

During the quarter, the top-five loss-making companies are IOCL, HPCL, BPCL, Reliance Communications and MTNL. MTNL?s loss rose 973.8 % to Rs 451 crore during from Rs 42 crore.

During April-June?09, the top five loss making companies were Wockhardt, Hind Photo Films, XL Telecom, KF Airlines and Jet Airways. For KF Airlines, the loss has decreased 21.1% to Rs 237 crore this quarter.

Among the industries studied, more than Rs 100 crore loss was registered for IT, electric equipment, entertainment, pharmaceuticals, refineries, steel, sugar, telecommunications, textiles and airlines.

During April-June 2009 quarter, there were 9 industries that registered a loss of more more than Rs 100 crore. Automobiles and ancillaries, electric equipment, entertainment, fertilizers, pharmaceuticals, steel, telecommunications, textiles and airlines were the ones Significant increase in losses was seen in IT, electric equipment, shipping, sugar, tea and telecommunications. Telcos’ losses increased from Rs 466 crore during April-June?09 to Rs 1,091 crore during April-June?10.

A downward trend in losses was seen in aluminium, automobiles and ancillaries, IT, electronics, engineering, entertainment, fertilizers, food & products, pharmaceuticals, steel, textiles, trading and airlines. Textiles companies losses decreased 43.1% to Rs 303 crore in this quarter from Rs 532 crore in April-June ?09.