The financial performance of the 201 companies that have declared their results for the quarter ended September 2003, has been in line with expectations.
While sales surged 16.64 per cent, net profits grew 32.2 per cent year on year. Also, sales increased 9.19 per cent and net profits 15.19 per cent sequentially in the second quarter over the first quarter of 2003-04.
|
Gathering steam | |||
|
(Rs Crore) |
Quarter ended |
% Chng | |
|
Sep-02 |
Sep-03 | ||
|
Sales |
33006.93 |
38498.79 |
16.64 |
|
Other income |
606.67 |
686.18 |
13.11 |
|
OP |
6141.95 |
7383.39 |
20.21 |
|
Interest |
1510.14 |
1318.50 |
-12.69 |
|
Gross profit |
4631.81 |
6064.89 |
30.94 |
|
Depreciation |
1495.55 |
1710.28 |
14.36 |
|
Tax |
587.46 |
985.14 |
67.69 |
|
Net profit |
2548.80 |
3369.47 |
32.20 |
|
OPM % |
18.61 |
19.18 |
- |
|
GPM % |
14.03 |
15.75 |
- |
|
NPM % |
7.72 |
8.75 |
- |
|
Total no of companies 201 | |||
The growth in profits of these early birds was largely driven by a decline in interest costs and an improvement in profit margins. Interest costs of the 201 companies fell 12.69 per cent, while gross profit margins moved up 172 basis points to 15.75 per cent.
The companies recording the highest sales growth include Infosys Technologies with a 29.01 per cent rise in sales, National Aluminium (34.48 per cent), Shipping Corporation (20.44 per cent), Hindustan Zinc (44.44 per cent), Adani Exports (128.67 per cent) and Pantaloon Retail (54.56 per cent).
Hindustan Zinc with a 204.31 per cent rise in net profit, BSES (133.95 per cent), Lupin (85.82 per cent before extraordinary items), Indo Rama Synthetics (61.18 per cent) and National Aluminium (57.84 per cent) were the profit drivers in the sample of early birds. Adani Exports, Shipping Corporation, Samtel Colour and LMW posted lower than the sample average growth in net profits.
Hero Honda's quarterly performance was a major disappointment, with the company posting almost a flat sales growth of 2.03 per cent. However, thanks to an 80.77 per cent rise in net profit, its profit margin increased 12.67 percentage points.
BSES, Samtel Colour, Merck, Unichem Laboratories, TVS Motors and Indo Rama Textiles dragged down the overall sales growth rate by posting single-digit growth in sales.
The second-quarter results show a welcome revival in infotech companies. The 25 technology companies in the sample recorded a 27.13 per cent growth in sales and a 25.02 per cent rise in net profits.
However, two- and three-wheeler companies notched a disappointing 4.36 per cent sales growth. The aggregate net profit of 13 pharmaceutical companies jumped 85.12 per cent on a sales growth of 17.19 per cent.
