Strong sectoral performance holds up net profit growth
B G Shirsat Mumbai Company results for the June quarter turned out better than expected, with net profit growth of 14.3 per cent, excluding three public sector oil marketing firms. The profit growth rate was 20 per cent excluding the oil and gas sector and around the same after excluding the banking and finance sector from the sample.
Growth drivers for India Inc were automobiles, castings & forgings, entertainment, fertilisers and mining & metals, with more than 100 per cent rise in net profit. Auto ancillaries, paper, plantation, retails, technology hardware and textiles fared better, posting over 50 per cent profit growth. Airways, sugar and telecom sectors reported net losses.
| HEALTHY GAINS |
| (Y-o-Y in %) | Quarterly growth in net profit |
| Sep ‘09 | Dec ‘09 | Mar ‘10 | Jun ‘10 |
| MOST PROFITABLE SECTORS |
| Steel | -85.71 | -27.48 | LTP | 337.10 |
| Entertainment | 11.99 | LTP | LTP | 268.97 |
| Fertilizers | -74.81 | 129.58 | 118.82 | 196.12 |
| Automobile | 658.35 | LTP | 221.35 | 193.60 |
| Mining & Mineral | -20.94 | -39.60 | 105.85 | 137.83 |
| Forgings & Fastners | -20.30 | LTP | LTP | 132.45 |
| Trading | -18.33 | 37.43 | 123.15 | 123.66 |
| Textiles | LTP | LTP | LTP | 117.87 |
| Gems & Jewellery | 22.76 | 479.21 | 590.65 | 78.78 |
| Auto Ancillaries | -1.22 | 278.87 | 311.99 | 50.47 |
| Total | 28.11 | 33.88 | 37.49 | -0.81 |
| Total (Ex oil & gas) | 1.53 | 46.04 | 70.70 | 20.74 |
| | Quarterly growth in net sales |
| GROWING SECTORS |
| Mining & Mineral | -21.49 | 3.66 | 27.48 | 86.70 |
| Automobile | 6.99 | 49.22 | 63.50 | 48.43 |
| Auto Ancillaries | 12.58 | 48.81 | 56.47 | 36.96 |
| Realty | -29.94 | 30.66 | 67.64 | 36.33 |
| Refineries | -23.07 | 17.37 | 44.56 | 33.20 |
| Sugar | -10.43 | 18.28 | 71.11 | 32.83 |
| Non-Ferrous Metals | -9.42 | 47.21 | 58.27 | 29.70 |
| Textiles | 17.51 | 27.22 | 25.04 | 26.98 |
| Airways | -18.19 | -1.27 | 17.09 | 26.65 |
| Paints/Varnish | 12.19 | 21.23 | 29.01 | 25.39 |
| Total | -7.57 | 13.17 | 28.07 | 21.71 |
| Total (Ex oil & gas) | -0.55 | 11.65 | 22.99 | 17.97 |
| LTP: Net loss to net profit. Total Common sample of 2,643 companies |
Banks, engineering, gems and jewellery, non-ferrous metals, pharmaceuticals, shipping and trading fared well, posting net profit growth between 20 per cent and 46 per cent. Chemicals, FMCG (fast moving consumer goods), power and steel sectors disappointed. Agro chemicals, cement, construction, consumer durable and telecom sectors reported a decline.
Revenue growth came from Reliance Industries, automobiles, auto ancillaries, airways, consumer durables, entertainment, forgings & castings, mining & metals, nonferrous metals and textiles. Software, pharma, FMCG and paper did moderately well. Steel, telecom, construction, fertilisers, infrastructure and shipping disappointed with insipid revenue growth.(MONEY MAKERS)
Money spinner
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