As many as 233 companies have surpassed their net profit of last year in just six months of the current financial year, though India Inc as a whole is struggling to maintain profit growth, due to rising input costs and a high interest burden.
These 233 have posted robust net profit growth on the back of factors such as improved sales volumes, higher other income and lower cost. The list includes companies that have turned around after recording losses in the previous year. These 233 companies posted an aggregate net profit of Rs 3,463 crore during the first half of 2011-12, compared with a net loss of Rs 443 crore during the entire year ended March 2011. The sample companies had posted a net loss of Rs 822 crore in the first six months of last year.
An average 35 per cent year-on-year growth in net sales to Rs 28,916 crore, and higher other income of Rs 2,318 crore compared to Rs 595 crore in the first half of last year, helped this performance. The outperformers are from various sectors, which include media and entertainment, edible oil, agrochemicals, breweries, chemicals, consumer durables, technology and textiles. PVR, Inox Leisure and Fame India from the entertainment industry have reported a significant growth in profitability on the improvement in occupancy rates due to blockbuster movies during the period. Tips Industries, Balaji Telefilms and Raj Television posted a smart turnaround performance by reporting net profit against a net loss last year.
“With a slew of good movies, occupancy to sustain at current levels, improvement in both average ticket prices, and food and beverages, and no major investments in the film production segment, there is better visibility on stronger revenues for the sector,” said a media analyst. Riding on the changing dynamics of the global refrigerant industry, chemical makers Gujarat Fluorochemicals and Navin Fluorine have surpassed the net profit of last year. Gujarat Flurochemicals’ net profit increased to Rs 348 crore in the first half against Rs 264 crore in all of last year, and Navin Fluorine’s net profit jumped to Rs 119 crore from Rs 72 crore.
JB Chemicals and Pharmaceuticals made a net profit of Rs 639 crore, on the back of a one-time profit of Rs 620 crore from sale of its Russia-CIS OTC (over-the counter pharma products) business and worldwide sales of three OTC trademarks. It had reported a net profit of Rs 118 crore in 2010-11. Indiabulls Power, Avanti Feeds, Thinksoft Global, AVT Natural Products, Cochin Minerals and Nath Seeds have reported a more than two-fold jump in their net profit compared to that in the entire previous financial year.