The signs of recovery in the domestic economy are visible as automobiles, cement, tyres and consumer durables sectors showed better-than-expected performance during the first half of this fiscal.
A study conducted on 2,212 major companies (excluding banks and NBFCs) that have declared their first-half results, shows that the aggregate net profit rose 23% to Rs 1.06 lakh crore during April-September 2009 probably due to the better-than-expected performance of major corporates such as IOCL, Bharti Airtel, Larsen & Toubro, Tata Motors, Mahindra & Mahindra. The aggregate sales of the 2,212 firms fell 10.5% at Rs 11.62 lakh crore during April-September 2009. Meanwhile, other income of these companies stood at Rs 29,186 crore, up 23.9%, during the same period.
The raw material cost decreased 15.15% to Rs 4.78 lakh crore and the interest outgo was dipped 4.2%. The PAT to sales ratio rose to 9.15% during the first half of this fiscal against 6.65% in the corresponding period previous year.
Care Ratings MD & CEO DR Dogra said, ?The early signs of recovery in the domestic economy are visible with better than expected performance by industries including automobiles, cement, tyres and consumer durables aided by higher consumer spending, tax cuts and reduced interest rates. However, much of the demand for goods can be due to stimulus packages provided by the government. But, sectors like capital goods, chemicals are still going through a difficult phase.”
Total net profit of 89 auto & ancillaries companies rose 80% to Rs 6,054 crore during the first half of this fiscal against Rs 3,364 crore during April-September 2008. The sales also rose 12.3%. The net profit to sales ratio jumped from 5.60% to 8.98%.
The group of 32 major cement companies’ sales rose 24% to Rs 18,654 crore ,the net profit increased 65.8% to Rs 3,363 crore during the first half ended September’09. The profit margin of cement group rose from 13.48% to 18.03% during April-September ’09.
The textile group comprising 238 companies showed sales and net profit growth of 8.6 % and 281.5% respectively during the first half. The net profit to sales ratio of textile group increased from 0.84% to 2.96% during April-September ’09. The tea group comprising 27 companies showed sales and net profit growth of 16.1% and 128.4% respectively during April-September 2009.
