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May 8, 2001
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Money > Business Headlines > Report May 8, 2001 |
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Topline majors are a drag on the bottomlineSamata Dhawade & Deepak Korgaonkar in Bombay A break-up of 1,130 companies whose results are available till Monday, into 11 groups of 100 companies each in terms of sales income, reveals that though the top 100 companies were the largest contributors to aggregate topline - sales -- income, they were a drag on the aggregate bottomline. The full sample includes infotech, media, banking and financial services companies. A dissection of the sample in percentiles (11 groups), in terms of sales income, reveals that the 300 companies which came on top accounted for 91 per cent of the total sales income. The 100 companies making the first batch of the top 100 managed just a 4.87 per cent increase in net profit at Rs 54.86 billion despite a 12.95 per cent increase in sales income at Rs 597.44 billion. They accounted for 73 per cent of the total sales and 96 per cent in terms of net profit. Reliance Industries' pathetic bottomline shows that the quarter had pulled down the growth rate in net profit of the top 100 companies. If Reliance Industries were to be excluded from the batch of top 100 by sales, the other 99 firms managed a 8.05 per cent rise in net. Meanwhile, the topline was heavily skewed down due to the presence of 16 public sector units in the batch. The 16 PSUs in the sample had a below average 8.2 per cent increase in sales income. On the other hand, the major contributor to aggregate bottomline was the next batch of 100 companies (from 101 to 200) that had a 28 per cent increase in net profit to Rs 60.11 billion on the back of a 11 per cent increase in sales income to Rs 100.85 billion. The increase in bottomline is all the more important, as the rise in net profit was despite a drop of 56 per cent in other income. This batch accounts for 10.5 per cent of the aggregate net profit and 12 per cent of sales income of the full sample. The performance could be attributed to the presence of nine infotech firms and one media company, which turned out more than 50 per cent increase in net profit. The next batch of 100 companies managed to reduce its net losses by 82 per cent buoyed by a 10 per cent increase in sales income. Powered by YOU MAY ALSO WANT TO READ:
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