Sales of 251 firms up 19.7%, 32 infotech companies record 12.26% increase in profit
Early corporate results for the quarter ended March 2003 are promising. The 251 firms that declared their results till Saturday recorded a 19.73 per cent growth in sales and a 27.36 rise per cent in net profit.
However, profit margins of these early birds were almost unchanged despite the higher sales growth. This could point to a revival in demand.
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Operating profit margins (profits before interest and depreciation) slipped from 16.5 per cent in January-March 2002 to 15.98 per cent.
However, gross profit margins improved from 13.6 per cent to 13.76 per cent, and net profit from 7.28 per cent to 7.77 per cent. Interest costs declined by 8.08 per cent.
Infotech companies continued to log lower margins, perhaps because competition has picked up in the business process outsourcing segment.
The quarterly results of the 32 companies so far reflect a top line rise of 40.12 per cent and a 12.26 per cent growth in net profit.
The net profit of Wipro, GTL and Mastek fell, while Satyam Computer and Hughes Software reported single-digit growth. Infosys Technologies posted a 23.2 per cent rise in net profit.
The effects of the drought are reflected in the performance of companies dependent on rural incomes. The quarterly sales of three diesel engine firms declined by around 1 per cent each, and their net profit by 38.4 per cent.
Three motorcycle companies showed a modest 7.68 per cent rise in sales, and a 7.5 per cent rise in net profit. Tractor giant Punjab Tractors posted its worst performance, with sales falling 48 per cent and net profit 58.3 per cent year-on-year.
Automobile ancillary companies managed to get a bigger share in the replacement markets, with seven firms recording an 11 per cent rise in sales and a 48.9 per cent rise in net profit.
Early results in the cement sector were encouraging, with Gujarat Ambuja posting a 25 per cent rise in net profit. Birla Corporation managed a turnaround with a net profit of Rs 2.47 crore, against a net loss of Rs 11.77 crore.