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Corporate India continues to be on the fast track to recovery. The 201 manufacturing companies that have so far declared their financial results for the quarter ended March 31, 2004, have posted a 33 per cent rise in sales.
This is for the first time in recent quarters that Corporate India has posted such a blistering sales growth. These 201 companies have also posted a smart 56 per cent jump in net profits.
India Shining: Complete Coverage
At the operating level, the 201 companies posted a 32 per cent growth in operating profits after a 32 per cent reduction in interest costs. Gross profits increased 41 per cent year on year. Other income increased 29 per cent in the quarter, adding substantially to bottomline growth.
However, for the full sample of 201 companies, operating margins declined marginally from 20.23 per cent in the quarter ended March 2003 to 20.11 per cent in the March 2004 quarter. But gross profit margins increased from 17.92 per cent to 18.92 per cent and net profit margins from 10.32 per cent to 12.11 per cent.
Among major industry groups, the total net profit of the four cement companies that have declared results so far more than doubled, from Rs 87.28 crore (Rs 872.8 million) in the quarter ended March 2003 to Rs 179.80 crore (Rs 1.80 billion) in the quarter ended March 2004, while sales increased 19 per cent from 792.25 crore (Rs 7.92 billion) to Rs 944.13 crore (Rs 9.44 billion).
The automobile ancillary sector also reported a smart growth in sales and bottomline during the quarter. The total net profit of the four automobile ancillary companies making engine parts increased by 118 per cent to Rs 125.66 crore [Rs 1.26 billion(Rs 57.62 crore)]. Sales jumped by 35 per cent to Rs 701.86 crore [Rs 7.02 billion(Rs 519.88 crore)].
The three companies in the automobiles two- and three-wheeler industry posted a 68 per cent growth in net profit and a 36 per cent rise in sales, while the 24 companies in the information technology industry posted a 25 per cent growth in sales and a 32 per cent jump in net profits.
But the results of the 17 companies in the pharmaceuticals industry were disappointing after Ranbaxy Laboratories reported a 47 per cent decline in its bottomline during the quarter. The industry posted a 9 per cent growth in net profit and a 13.3 per cent in sales during the March 2004 quarter.
Excluding Ranbaxy Laboratories, the net profits of the remaining 16 companies increased by 83 per cent despite a 35 per cent decline in sales.
BJP loses sheen
Heat and violence marred the second phase of general elections as 55-60 per cent voters cast their votes in 136 constituencies spread over 11 states.
At the end of the day, television exit polls covering over 50 per cent of the Lok Sabha predicted a hung House, projecting a depleted strength for the Bharatiya Janata Party-led National Democratic Alliance.
The Congress, according to these polls, is the biggest gainer, up by nearly 25 seats on average from its strength in 1999. Based on the exit polls at the end of the two phases, Aaj Tak gave the NDA 266 seats, 36 less than in 1999, the Congress and its allies 175 and "Others" 102.
The Star News-C Voter analysis projected 267-279 seats for the NDA, 162-172 for the Congress and its allies and 97-109 for others, including the Bahujan Samaj Party and the Samajwadi Party.