A total of 345 companies have so far declared their results. Analysis of the results of a common sample of 237 companies showed that the net profit growth at 21.97 per cent was better than that recorded in the previous two quarters (see table). 

QUARTERLY GROWTH RATE OF 237 COMPANIES
Quarter ended	Sales	Operating  profit	Net  profit
Jun-07	22.54	29.89	27.07
Sep-07	16.43	15.42	17.10
Dec-07	16.79	17.42	14.37
Mar-08	28.84	21.96	21.97

The star performers were Bharti Airtel [Get Quote], Bharat Electronics [Get Quote], Cipla, Hero Honda, Hindustan Zinc [Get Quote], Idea Cellular [Get Quote] and Nicholas Piramal [Get Quote]. These seven companies have posted an average net profit growth rate of 42.5 per cent.

The average net profit growth of the early birds would have declined to 15.7 per cent if these seven companies were excluded from the list.

Information technology and cement companies were the laggards. Analysts attributed this to poor price realisations by cement firms and the hit taken by information technology companies from an appreciating rupee, the sub-prime meltdown in the West and the slowdown in the US.

A sizeable portion of the revenue of IT firms comes from the financial sector in the US. Adding to the woes were the textile firms, which have hardly shown any growth in the last five years.

The four top IT firms -- Tata Consultancy Services [Get Quote], Infosys Technologies [Get Quote], Satyam Computer Services [Get Quote] and Wipro [Get Quote] - posted their lowest-ever average net profit growth of 4.9 per cent during the quarter.

Three leading cement firms - ACC, Ambuja Cement [Get Quote] and UltraTech Cement [Get Quote] - reported a decline of 18 per cent in net profit growth. Analysts said this was due to rising input costs with no corresponding rise in price realisation.

Profit margins have declined by 100-125 basis points (bps) during the quarter. The operating profit margin has declined by 125 bps from 22.54 per cent in the March 2007 quarter to 21.29 per cent in the quarter under review.

Net profit margins fell 94 bps from 13.21 per cent to 12.27 per cent over the same period.

Meanwhile, the net sales of the 345 firms have increased 27.9 per cent, driven by Reliance Industries [Get Quote], which posted a revenue growth rate of 35.8 per cent and state-owned MMTC (92.5 per cent). Excluding Reliance Industries and MMTC, the sales growth rate has declined to 22.5 per cent.