Though India Inc’s bottomline growth was in two digits during Q1, the country’s top 25 Industrial houses’ growth was in single digit.
The net profit growth of top 25 business houses showed an increase of 4.5% during Q1 FY10. The fastest growth was notched up by Essar, at a rate of 906.5% followed by Bajaj Group by 260.4%.
On the other hand, Jaiprakash Gaur Group logged sales growth of 69.7% followed by Welspun with 62.9% and Brijmohan Lall Munjal with 31.4%. Among the top 25 business houses, Mukesh Ambani-led, Reliance Group topped in terms of sales, in Q1 FY10, however, it showed a decline of 4.5% and 9% in sales and net profit respectively.
Among Essar group companies, Essar Oil showed highest growth of 463.3% in terms of net profit during the first quarter. Meanwhile, a significant growth rate in sales was also seen in Mahindra, B K Birla, B C Jindal , Sriram Thyagaraj and UB Group.
Among the top five business houses, AB Mgmt Corp Group posted the highest rise in sales, from Rs 12,201 crore in Q1 FY09 to Rs 12,969 crore in Q1 FY10. The aggregate net profit of the AB Mgmt Corp companies increased by 17% to Rs 2,111 crore in Q1 FY10 from Rs 1,805 crore in Q1 FY09.
Reliance Group accounted for 26% or more of the total sales of the top 25 business houses.
In absolute terms, the total net profit of the 25 largest business houses has increased to Rs 16,391 crore in Q1 FY10 from Rs 15,681 crore in Q1 FY09. More than10% increase in net profit was witnessed in the case of 9 business houses.
The total sales of the 25 houses marginally decreased by 0.5% to Rs 1.52 lakh crore in Q1 FY10, against Rs 1.53 lakh crore in Q1 FY09. The total other income increased by 61.4% to Rs 4,039 crore in Q1 FY10 from Rs 2,502 crore Q1 FY09. Reliance topped the list with sales of Rs 39,707 crore in Q1 FY10 and the Rajan Raheja stood last with Rs 1,178 crore.
The ratio of PAT to sales of 25 business houses increased from 10.25% in Q1 FY09 to 10.76% in Q1 FY10. Individually, the ratios increased significantly in the case of Bajaj, B K Birla, Welspun, Jaiprakash Gaur and R P Goenka. There was a decrease in Tata, ADAG, Sterlite, Videocon and Murugappa Group.
