An analysis of the results of 275 companies in the 2005
October-December quarter reveals that the growth in net
profits of the corporate sector was a healthy 22.5 per
cent with net sales growth of 17.8 per cent.
rose to Rs81,413 crore compared with Rs69,094 crore in
the same period of the previous year while net profit
increased to Rs9,814 from Rs8,012 crore during the same
period. Interestingly, other income rose by only 2 person
over the previous year.
the operating profit margin - which has stayed flat around
21 per cent, indicating that companies were trading off
margins for aggressive sales or expanding operations
though operating expenditure rose 17.3 per cent to Rs66,226
crore, net profit margins improved only marginally from
11.60 per cent to 12.05 per cent.
25 largest companies in the survey - those with a turnover
over Rs500 crore had a growth in turnover of 16.3 per
cent and a rise in net profit of 18.4 percent.
in the Rs100 to Rs500 crore range had a comparatively
better growth in turnover of 21.2 per cent and a rise
in net profit of 38.5 per cent.
the sales-laggards had higher net profits those
with sales below Rs100 crore ramped up their profits 104.6
per cent on a 28.7 rise in sales.
and medium companies, particularly in the sugar sector,
which have had a great year in 2005, emerged the best
performers with their sales and profit growth outperforming
the larger corporates.
the 25 large companies that have declared their results
so far, only three have posted a decline in net profit
private sector major Reliance Industries (net down
15 per cent to Rs1,776 crore), Ranbaxy Laboratories (net
down 56.2 per cent to Rs68.60 crore) and JSW Steel (net
down 38.2 per cent to Rs139.20 crore).
top performers were HCL Technologies (net up 263 per cent
Satyam Computer (up 161 per cent), Bharat Earth Movers
(up 130 per cent), Tata Power (up 120 per cent), Hindustan
Zinc (up 102 per cent), Larsen & Toubro (81 per cent)
and Sterlite Industries
(up 67.8 per cent). The Singhania group firm JK Industries
rebounded to the black, notching up a profit of Rs 2.47
crore from a net loss of Rs 9.20 crore.