The number of companies registering losses has declined.
An FE study of 2,571 listed companies (excluding banks and NBFCs) showed that the number of loss-making companies fell 26.9% y-o-y to around 640 during July-September 2010. This is the lowest in the last three quarters(y-o-y). The number of loss-making companies in the July-September quarter stood at 875 in 2009 and 978 in 2008. Telecom companies contributed 24% of the total loss during July-September 2010. The quantum of loss for the quarter under review fell to Rs 5,424 crore in 2010 from Rs 5,818 crore in 2009 and Rs 18,581 crore in 2008.
?The decline in losses of the companies is attributed purely to the growth of the economy,? CNI Research CMD Kishor P Ostwal said.
MTNL, Reliance Communications, Ispat Industries, KF Airlines and Tata Tele (Mah) were the top five loss-making companies during July-September 2010.
Reliance Communications? loss soared 304.1% to Rs 476 crore from Rs 118 crore in same quarter previous fiscal.
The cumulative sales of the 640 loss-making companies stood at Rs 33,329 crore during July-September 2010 against Rs 2.11 lakh crore of 978 companies in same quarter 2008.
Among the industries, IT, electric equipment, entertainment, pharmaceuticals, steel, sugar, telecommunications, textiles and airline companies logged losses of Rs 200 crore or more.
Significant increase in loss was seen in the case of cement, IT, electronics, pharmaceuticals, steel, sugar and telecommunications companies. Telecom firms losses nearly trebled to Rs 1,317 crore during July-September 2010 from Rs 437 crore in July-September 2009. A downward trend in losses was seen in the case of construction, electrical equipment, entertainment, textiles and airline companies.
The losses of airlines decreased 74.9% to Rs 233 crore in the quarter under review from Rs 929 crore in same quarter 2009.
