India Inc on a roll, sales up 22%

Corporate India is still on a roll, never mind the new Congress-led coalition government or its common minimum programme. 
 
Look no farther than India Inc's net profit growth for the quarter ended March 2004. The net profit of 1,850 companies whose quarterly results are available soared by 69.3 per cent -- a 17-quarter high. 
 
The sales of these companies jumped by 22 per cent during the March 2004 quarter -- a 16-quarter high. These 1,850 companies account for 65 per cent of the total market capitalisation on the Bombay Stock Exchange. 
 
The same set of 1,850 companies reported a net profit growth high of 54 per cent during the September-December quarter of 2003. In the July-September 2000 quarter, these companies had reported sales growth of 20.7 per cent. 
 
The final corporate financial tally, however, is not in as yet because the Oil and Natural Gas Corporation, Hindustan Petroleum Corporation, Indian Oil Corporation, Larsen and Tourbo, Mahindra and Mahindra and Tata Steel are yet to announce their quarterly financial performances. 
 
In the March 2003 quarter, the net profit of these companies jumped by more than 90 per cent and sales increased by 33

per cent. 
 
If these six companies repeat their performance, the growth in the corporate sector's net profit may for the first time top 70 per cent during the quarter ended March 2004. 
 
If the corporate sector has done extremely well in the quarter that ended in March 2004, it is because of lower interest costs and higher sales. 
 
Profit margins, both gross and net, improved by more than 50 basis points. As many as 23 industries posted an aggregate net profit growth of more than 60 per cent during the quarter. The petrochemicals, bearings and sugar industries posted more than 65 per cent growth in their bottomline during the quarter. 
 
The aluminium, auto ancillaries, automobiles (both heavy commercial vehicles and cars), cement, paper, shipping and steel industries reported more than 100 per cent growth in total net profit. The chemicals, ferro alloys, fertilisers, telecommunications and textile industries reported a turnaround during the quarter.