The sales and net profit growth of subsidiaries were higher than that of their parent firms for the quarter ended September 2010 against the year-ago period.

The 352 companies for which the second quarter results were available with FE, saw a 26.7% increase in aggregate net sales of the subsidiaries in this group to Rs 1.25 lakh crore. The aggregate net profit of the subsidiaries was up by 500.1% to Rs 10,291 crore during the September quarter against the year-ago period.

The standalone sales of the parent firms increased by 13.1% to Rs 1.52 lakh crore; their other income shot up by 493.9%, and aggregate operating profit increased by 57% to Rs 52,016 crore from Rs 33,131 crore in the year-ago period. Interest cost decreased by 7.1% to Rs 4,464 crore for the September quarter, while operating profit margin rose by 955 basis points to 34.18% from 24.63% in the same period the previous year.

The top-five firms as per the sales number of their subsidiaries in the September quarter were Tata Steel, Tata Motors, Bharti Airtel, Adani Enterprise and Grasim Industries.

The highest growth in sales was registered by Bharti Airtel?s subsidiaries. There are 17 subsidiaries of Bharti Airtel, including Bharti Hexacom, Bharti Airtel Services, Bharti Telemedia, Bharti Infratel and Network i2i.

The sales of the 17 subsidiaries of Bharti Airtel increased by 300.5% to Rs 5,915 crore for the quarter against Rs 1,477 crore reported in the year-ago period.

The operating profit margin of these subsidiaries decreased by 20.5% to 30.76% during the quarter, from 51.31% in the year-ago period.

The top-five companies in terms of subsidiaries’ operating profit were Tata Motors, Cairn India, Bharti Airtel, Reliance Communications and Sterlite Industries. Here, the highest growth in subsidiaries’ operating profit was reported by Tata Motors.

There are 17 direct subsidiaries of Tata Motors. These include HV Axles, HV Transmissions, TAL Manufacturing Solutions, Sheba Properties, Concorde Motors (India), Tata Technologies, Tata Motors Finance and TML Distribution Company. The operating profit of Tata Motors’ subsidiaries increased by 1,061.6% to Rs 2,997 crore as compared with Rs 258 crore.

The operating profit margin of the subsidiaries increased by 1,552 basis points to 17.51% against 1.99% reported in the same period of the previous financial year.