Net profit of 500 IDBI-aided firms jump 87 per cent

A sample of 500 private sector companies assisted by Industrial Development Bank of India (IDBI) have reported 87.2 per cent jump in net profit in April-September 2004. The companies' net profit increased to Rs 10,154 crore from Rs 5,425 crore.

IDBI said the increase in profit was mainly owing to better working results by companies in steel, artificial fibres, cement, fertilisers, sugar, electricity generation and cotton textiles.

The aggregate gross margin of the sample companies increased to 18.9 per cent from 17.5 per cent, while the net margin rose to 7.2 per cent from 4.9 per cent.

Aggregate net sales of the 500 companies rose 27.7 per cent year-on-year to Rs 1,41,546 crore in the first half of 2004-05.

The sample covers companies in 31 industry groups engaged in manufacturing and service industries, except financial services.

Of the 31 groups, 28 groups recorded growth in net sales during the 2004-05 first half. Iron and Steel recorded the highest growth in net sales at 50 per cent, followed by metal products (48 per cent).

Automobile ancillaries' sales were up by 44.4 per cent, food products (other than sugar) 43.5 per cent, petrochemicals 42.4 per cent and non-ferrous metals 37.6 per cent, cement 36.8 per cent and hotels 35.6 per cent.

Industry groups where net sales declined were rubber other than tyres and tubes (31.4 per cent, non-metallic mineral products (4.2 per cent) and telecom services (2.0 per cent).

IDBI said cost of raw materials/trading goods increased by 31.5 per cent to Rs 79,571 crore during April-September 2004.

Aggregate cost of production rose by 26.1 per cent to Rs 1,18,519 crore, while gross profit increased 37.5 per cent to Rs 26,746 crore. The provision for tax was up 66.4 per cent to Rs 4,032 crore.