Net profit is up 41.56 per cent for 502 companies which have declared their results so far for the quarter ended March 31. These companies reported aggregate net profit of Rs 6,536 crore, against Rs 4,618 crore in the same quarter of the previous year.
The galloping growth was partially checked by public sector companies. In fact, net profit would have risen by 67.7 per cent if the 16 public sector companies in the sample were excluded.
The net profit surge comes on the back of a 20.8 per cent rise in sales to Rs 56,113 crore, from Rs 46,461 crore in the same period last year. This indicates improved profit margins. Excluding the 16 PSUs, the private sector companies reported 22.7 per cent growth in sales income.
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The market capitalisation of these 502 companies accounts for nearly 54.9 per cent of the Bombay Stock Exchange's market cap. The aggregate gross profit of these companies increased 32.19 per cent to Rs 10,622 crore.
However, this early sample is largely skewed by the dominating presence of 50 information technology companies, and petrochemicals major Reliance Industries. The IT companies and RIL account for nearly 18.5 per cent of the total net profit and 19.1 per cent of the sales income of the 502 companies.
Excluding the 50 IT companies and RIL, net profit growth almost halves to 33.8 per cent and sales growth drops to 12.3 per cent.
The IT companies turned in blistering net profit growth of 107.63 per cent to Rs 595 crore, on top of 78.4 per cent sales growth to Rs 3,788 crore.
RIL's sales rose 83 per cent to Rs 6,594 crore and net profit 71.7 per cent to Rs 654 crore.
A large part of the improvement in corporate bottomlines may be attributed to lower interest outgo of just 6.1 per cent at Rs 2,192 crore.
Operating profit margins climbed to 22.84 per cent from 21.75 per cent in the same period of the previous year. Gross profit margins improved to 18.93 per cent from 17.30 per cent and net profit margins to 11.65 per cent from 9.94 per cent, reflecting improved price realisations, greater operational efficiency and significant demand pull in the economy.
Even the PSUs reported improved sales. However, Steel Authority of India Ltd is yet to announce its quarterly results.
Net profit of the 16 PSUs increased 21.2 per cent to Rs 3,146.85 crore from Rs 2,597 crore and sales income 16.6 per cent to Rs 17,115 crore from Rs 14,678 crore. Their aggregate net profit accounted for nearly 48 per cent of the 502 companies' bottomline and 30.5 per cent in terms of sales income.
Bongaigaon Refinery's net profit slumped a hefty 93 per cent to Rs 1.3 crore. A spurt in international prices of crude oil, its major input, along with frequent and inappropriate changes in the producut go pared the bottomline of the giants.
While other PSU like Gail's net profit was down 46.9 per cent and National Fertiliser's net profit by 76.2 per cent. VSNL's higher provision for depreciation and taxation pulled its net profit down 7.4 per cent to Rs 311.9 crore.
However, other PSUs managed to put a good show in terms of net profit. MTNL reported a rise of 125.7 per cent rise in net profit while Bharat Electronics managed 87 per cent growth.
National Aluminium notched 126 per cent rise in net profit. While Hindustan Copper managed to reduce its net loss by 46 per cent to Rs 3050 crore.
Strong Quarter
No of companies : 502
Quarter ended
Rs Crore Mar 1999 Mar 2000 %Chng
Sales 46,460.83 56,113.34 20.8
Other income 1,491.06 1,964.53 31.8
Operating profit 10,103.12 12,813.88 26.9
Interest 2,065.96 2,191.66 6.1
Gross profit 8,037.16 10,622.22 32.2
Depreciation 2,554.08 3,040.65 19.1
Tax 864.74 1,045.24 20.9
Net Profit 4,618.35 6,536.33 41.6
OPM(%) 21.8 22.8
GMP(%) 17.3 18.9
NPM(%) 9.9 11.7
PSUs : 16
Quarter ended
Rs Crore Mar 1999 Mar 2000 %Chng
Sales 14,678.10 17,114.59 16.6
Other income 537.09 672.60 25.2
Operating profit 4,567.06 5,204.19 14.0
Interest 424.22 447.41 5.5
Gross profit 4,142.84 4,756.78 14.8
Depreciation 1,127.46 1,226.92 8.8
Tax 418.03 383.01 -8.4
Net Profit 2,597.35 3,146.85 21.2
OPM(%) 31.1 30.4
GMP(%) 28.2 27.8
NPM(%) 17.7 18.4