Planning takes MP Birla Group to top slot in return on net worth

Reliance Industries chairman Mukesh Ambani has the highest net worth in India. However, when it comes to returns generated on net worth (RoNW), the pole position has been bagged by the MP Birla Group.

The group was the top performer in terms of RoNW among 34 industrial houses last fiscal. RoNW is computed by dividing net profit by net worth and multiply it by 100. Among the 34 houses, M P Birla, Shiv Nadar and H S Singhania were the best performers for the period under review, last fiscal.

The average RoNW of the M P Birla group (four units) increased from 18.21% during 2008-09 to 26.35% last fiscal. Total net profit of the group increased 89.6%to Rs 598 crore last fiscal.

Among the four M P Birla group companies, the highest RoNW was seen in the case of Birla Corporation (31.24%). Net profit of the company increased 72.2% to Rs 557 crore.

H V Lodha, chairman, Birla Corporation, said : ?The company has earned a remarkable reputation for unrivalled quality and reliability of its cement brands. Various innovative steps, including logistical planning, greater emphasis on blended cement and restructuring marketing zones helped the company in achieving excellence.?

In the Shiv Nadar group ( five units), the average RoNW increased from 24.35% to 25.48%. Total net profit of the group increased by 14.1% to Rs 1,289 crore.

Total net worth of the Group also increased by 9% during the study period. Among the five Shiv Nadar group companies, highest RoNW was registered in the case of HCL Technologies (28.59%).

Shiv Nadar, chairman & chief strategy officer, HCL Technologies said: ?HCL has outperformed industry growth during the last 5 years with a strong focus on value, relationships and innovation.We will continue to build upon our business fundamentals and are confident of keeping up the momentum of growth.” For H S Singhania group, the average RoNW figure of six major companies increased from 15.19% to 25.22%.

Net profit of the group also increased by 109.9% during the same period. Among the 6 firms, highest RoNW was seen in the case of J K Tyre & Industries followed by J K Lakshmi Cement.