The performance of 162 companies for the quarter ended June 2002 shows a sales growth of 15.4 per cent and a 62.6 per cent rise in net profit. The aggregates support the view that a recovery is well under way in the corporate sector.
Of a sample of early birds, 73 firms have reported the bulk of the growth while the remaining 89 have reported flat sales growth. The 73 companies account for 62.5 per cent of the sales and 79.1 per cent of the net profit of the sample firms.
The net profit of these 73 companies increased 92.9 per cent, largely on account of a 6.8 per cent decline in their interest burden. The net profit of the remaining 89 companies declined 3.3 per cent.
However, with these 162 firms accounting for only 15.43 per cent of the total market capitalisation of the corporate sector, it is too early to confirm a recovery. But hopes hinge on the fact that these companies had registered a 3 per cent growth in sales in the quarter ended March 2002. Their profits for the quarter increased 100 per cent.
Aggregate sales of these 162 companies increased 15 per cent at Rs 14,868.40 crore, compared to Rs 12,881.27 crore in the corresponding quarter of the previous year. Their net profit increased 63 per cent at Rs 851.8 crore (Rs 523.73 crore). The total interest outgo stood 4.53 per cent lower at Rs 684.36 crore in the quarter ending June 2002, against Rs 716.86 crore in the previous comparable period.
Of the sample firms, the bigger corporates to come out with results for the quarter ending June 2002 were Hero Honda (sales up 33.9 per cent, net profit up 76.6 per cent), Chennai Petroleum (sales up 18.5 per cent, net profit 145.5 per cent), Indo Gulf Corporation (sales 22.9 per cent, net profit 35.2 per cent), and Ranbaxy (sales up 43.1 per cent, net profit 189.9 per cent).
Wipro
