Small, mid-caps outperform biggies in Q4 net sweepstake

The small and mid-cap companies with sales turnover between Rs 25 crore and Rs 100 crore have outperformed the big boys of India Inc in terms of net profit during the quarter ended March 2005.

Seventy four big players "" with sales revenue of more than Rs 500 crore "" posted a net profit growth of 35 per cent against a 39 per cent jump in net profit reported by the total sample of 1,553 companies analysed for this study.

In contrast, the aggregate net profit of 327 small and mid-cap firms increased by 59 per cent. Companies with sales turnover in the range of Rs 100-500 crore have posted a 55 per cent rise in net profit during the quarter.

Out of 327 small and mid-cap companies, net profit increased by more than 100 per cent for 68 firms, while 32 companies clawed back into the black during the quarter.

Smaller companies "" with sales turnover below Rs 25 crore "" however, lagged far behind the average, clocking negative sales growth of 0.26 per cent, while net losses of these firms climbed by one per cent to Rs 270 crore. 916 firms come under this bracket.

When it comes to sales, the giants did better than others, clocking 21 per cent rise in sales versus 19.64 per cent growth reported by the entire corporate sector.

The companies in the Rs 50-100 crore sales bracket, posted 15.44 rise in sales, while those firms in Rs 100-500 crore sales bracket, reported 18.38 per cent rise in sales.

On interest cost front, the mid-cap companies in the Rs 50-100 crore sales bracket reported 19 per cent decline during the quarter.

The sample of 1,553 companies taken up for this study, reported 5.92 per cent rise in interest cost. While the interest cost of giants increased by 17 per cent during the quarter.

Gross profit margin and net profit margin in all sales brackets showed a rise of over 100 basis points.