Third Quarter Net Profit Of 290 Companies Up 50.5 Per Cent

Updated: Jan 28 2003, 05:30am hrs
The third quarter (Q3) net profit of 290 major companies which announced their results so far increased by 50.47 per cent to Rs 5,258 crore during October-December 2002 from Rs 3,494 crore during the corresponding period of the year 2001.

This is mainly on account of a significant rise in the net profit of some major companies like BPCL, Tisco, Bharat Earth Movers, Hindustan Zinc, Indo Rama Synthetics, Rajasthan Spg & Wvg, Ocl India, Colour-Chem, Camlin, Torrent Cables and Canara Bank.

The net profit of Tisco increased by 711.32 per cent to Rs 280.23 crore during October-December 2002 from the level of Rs 34.54 crore during October-December 2001.

The sales of the company increased by 26.11 per cent to Rs 2398.92 crore during October-December 2002. The other income of the company decreased by 26.59 per cent during the same period.

Indo Rama Synthetics is another notable example. The company registered a sharp 160.05 per cent increase in net profit and a 40.21 per cent rise in sales to Rs 490.42 crore during the third quarter.

Among the public sector units, BPCL has performed better. While its sales increased by 29.0 per cent to Rs 12,645 crore, the net profit increased by 224.1 per cent to Rs 233.00 crore. Other income of BPCL increased by 100.8 per cent to Rs 96.20 crore during October-December 2002.

In the banking sector, Canara Bank has performed better while its main income grew 5.6 per cent to Rs 1654.12 crore, the net profit increased by 82.6 per cent to Rs 291.72 crore during October-December 2002. Other income increased by 35.6 per cent to Rs 405.35 crore during October-December 2002.

In the manmade fibre sector, Garden Silk Mills has performed better while its sales grew 43.1 per cent to Rs 157.60 crore, the net profit increased by 96.12 per cent to Rs 12.96 crore during October-December 2002.

Among the electrical goods companies, Siemens showed a significant 68.14 per cent increase in net profit.

Sales of the company increased by 14.67 per cent to Rs 298.50 crore during October-December 2002. Other income of the company declined during the third quarter.

There are some major companies whose performance has been adversely affected in terms of net profit. Mention may be made of IBP, HCL Infosystems, BSES, Coromandel Fertilisers, Abhishek Industries and Mascot Systems. The net profit of BSES declined by 83.18 per cent to Rs 14.60 crore during October-December 2002 from the level of Rs 86.79 crore during October-December 2001. Its sales also decreased by 5.53 per cent to Rs 567.99 crore during October-December 2002.

Coromandel Fertilisers also fared poorly in terms of performance. The net profit declined by 66.22 per cent to Rs 6.31 crore during October-December 2002 from the level of Rs 18.68 crore during October-December 2001. Its sales also decreased by 24.78 per cent during the same period.

Significant losses were registered by a few companies during October-December 2002. A mention may be made of Ispat Industries (Rs 17.95 crore), Jindal Vijayanagar Steel (Rs 59.87 crore), Madras Fertilizers (Rs 5.09 crore), Rallis India (Rs 6.86 crore), Tata Finance (Rs 13.94 crore), Southern Iron & Steel (Rs 6.43 crore), Kirloskar Electric (Rs 16.43 crore), Morarjee Goculdas Spg & Wvg (Rs 16.16 crore), Shalimar Wires (Rs 27.69 crore) and TVS Finance(Rs 6.29 crore).

On the overall front, the total sales of the 290 major companies increased by 12.72 per cent to Rs 63,081 crore during October-December 2002 from the level of Rs 55,963 crore during October-December 2001. Significant sales growth was seen in the case of Bharati Tele-Vent, HCL Infosystems, Moser Baer, Jindal Steel & Power, Hindustan Organic, Graphite India, Bharat Seats, KPL International and Encore Software.

Other income of the above number of companies increased by 29.96 per cent to Rs 2,623 crore during October-December 2002 from the level of Rs 2,018 crore during October-December 2001.

The operating profit rose by 17.69 per cent to Rs 17,774 crore (Rs 15,102 crore) during October-December 2002. More than 100 per cent increase in operating profit was seen in the case of Tisco, Ispat Industries, Jindal Vijayanagar Steel, Jindal Iron & Steel, Hindustan Zinc, Graphite India and Salora International.

Gross profit also increased by 36.22 per cent to Rs 10,374 crore during October-December 2002 from the level of Rs 7,615 crore during October-December 2001. Profit before tax(PBT) showed a growth of 46.99 per cent to Rs 7,271 crore (Rs 4,947 crore) during October-December 2001.

The profit margin (PAT to sales) of 290 major companies increased from 6.24 per cent during October-December 2001 to 8.34 per cent during October-December 2002.

A similar trend can be seen in the case of Tisco, Canara Bank, Oriental Bank, Corporation Bank, Indo Rama Synthetics and BEML.

An opposite trend can be observed in the case of MTNL, HCL Infosystems, BSES, Hindalco Ind, Electrosteel Castings and Coromandel Fertilisers.

The average EPS of 290 major companies increased by 50.5 per cent to Rs 2.77 during October-December 2002 from the level of Rs 1.84 during October-December 2001.