The top line and bottom line growth of India?s top 25 industrial houses for the first quarter ended June 30, 2010 was both in double digits.
Net profit growth (Banks and house of NBFCs are not considered) increased 22.2% during the quarter (Q1). The fastest growth in net profit was notched up by Torrent, at 234.8%, followed by Venu Srinivasan’s TVS group at 153.9%. Operating profit growth of these top 25 business houses also rose 21.9% during Q1.
Hinduja group, on the other hand, logged sales growth of 87.7%. This was followed by Mukesh Ambani at 86.7% and Essar group with 58.5% growth. Tata Group, the second-highest in terms of sales, in the quarter showed an increase of 60.5% in net profit and an increase of 15.7% in sales.
Among Hinduja group companies, Ashok Leyland reported a significant growth of 234.6% in operating profit during the quarter. Sales of Ashok Leyland also increased 155.7% to Rs 2347.98 crore from Rs 918.07 crore in the corrosponding quarter last fiscal.
Significant sales growth was also seen in the case of Reliance Industries led by Hinduja ,Mukesh Ambani, Essar, Jaiprakash Gaur, Sterlite, Torrent, TVS Venu Srinivasan , Bajaj and R P Goenka. In absolute terms, the total operating profit increased to Rs 34,617 crore from Rs 28,396 crore.Net profit of the sample also increased from Rs 14,755 crore to Rs 18,032 crore.
More than 50% increase in net profit was witnessed in the case of six houses. These include Tata, Sterlite, Hinduja, Torrent and TVS Venu Srini.
Among the top five business houses, Reliance Industries, led by Mukesh Ambani, posted the highest rise in sales, from Rs 31,201 crore in April-June ?09 to Rs 58,240 crore in April-June?10.
Aggregate operating profit of the Reliance Industries, led by Mukesh Ambani group of companies, increased 41.9% to Rs 10,073 crore this quarter from a profit of Rs 7,100 crore in April-June?09. The Reliance Group accounted for 25% or more of the total sales of the top 25 business houses for the period under consideration.
Total sales of the 25 houses rose 37.7% to Rs 1.69 lakh crore, compared with Rs 1.23 lakh crore in April-June?09. Total other income of the business houses rose 21.9% to Rs 4,452 crore.
The Avantha group was the laggard in sales with Rs 1,343 crore. Of the remaining houses, Tata, Aditya Birla group, Essar, Om Prakash Jindal, Sterlite and Mahindra registered sales exceeding Rs 7,000 crore each.
The ratio of operating profit to sales of 25 business houses decreased from 23.13% in the first quarter last fiscal to this quarter. Individually among the top 25, the ratios increased significantly from April-June?09 to April-June?10 in the case of Tata, Sterlite, Torrent ,Murugappa Group, ADAG and Avantha Group.
The NPM of 25 business houses also decreased from 12.02% during April-June?09 to 10.66% during April-June?10.