Interestingly, more than 50% increase in net profit was witnessed in the case of seven business houses, namely Mukesh Ambani, Ruchi, R P Goenka, Mahindra, Torrent, Welspun and Walchand.
However, the fastest growth in sales was notched up by Torrent, at the rate of 96.4% followed by Welspun, which grew at 49.5%. Strong performance by its flagship Hindustan Construction saw the Walchand Group logging a 193% growth in net profit followed by Welspun Group, which had earnings growing by 146.4% and Mahindra Group which also doubled its net earnings.
Among the top five business houses, the Tata Group, with 17 major units, posted the highest rise in sales from Rs 25,655 crore in FY07, sales have touched Rs 31,849 crore FY08. The aggregate net profit of the 17 Tata Group companies also increased to Rs 5,445 crore in the 08 fiscal from Rs 4,220 crore in the preceding fiscal. Incidentally, the Mukesh Ambani group accounted for 35% or more of the total revenues of the top 25 business houses in the period under study.
As regards to profitability, the net profit margin or the ratio of net profit (PAT) to sales of 25 business houses increased from 12.81% in FY07 to 13.99% in FY08. Individually, among the top 25, the groups that saw a marked increase in net profit margins are Mukesh Ambani (10.70% to 14.59%), BK Birla (8.84% to 9.53%), RP Goenka (6.57% to 9.29 %) and Mahindra (5.91% to 9.66%).
The ratios decreased significantly in the case of Hinduja (14.79% to 6.41%), K K Birla (11.24% to 6.93%) and U B (14.09% to 9.01%).