Pune firms outperform India Inc in 2nd quarter

64 firms' net up 108%, sales up 36 per cent

Pune-based companies have outperformed India Inc by posting a 36 per cent growth in sales and a hefty 108 per cent growth in net profits during the quarter ended September 2005. Corporate India has faired badly with 2,256 companies registering 18.53 per cent sales growth and 19.33 per cent growth in net profit in July-September quarter.

The Pune region houses 64 companies. Collectively, they have reported sales of Rs 7,725 crore during the quarter ended September 2005, up 35.59 per cent over the net sales of Rs 5,697 crore in the corresponding quarter of the previous year.

Their operating profits were up 64.30 per cent to Rs 2,105 crore and gross profits higher by 72.21 per cent to Rs 1,427.65 crore. Despite a 52.47 per cent higher tax provision to Rs 283 crore, the net profit of these companies rose by 108.19 per cent to Rs 902.07 crore.

Profit margins improved substantially. For instance, operating profit margin of these companies was up 476 basis points to 27.25 per cent, while gross profit margin moved up by 393 basis points to 18.48 per cent and net profit margin by 407 basis points to 11.68 per cent.

Pune is a hub of two-wheelers, auto ancillaries and engineering outfits. There are companies information technology, fertilisers and steel companies too. 
 

BEATING GOLIATHS
Company	Sales	% Chng	OP	% Chng	NP	% Chng
Bajaj Auto	1,866.95	28.91	451.84	45.10	290.81	61.63
Bharat Forge	376.61	29.80	108.60	32.84	51.77	36.85
Cummins (I)	357.30	20.40	63.79	22.25	37.77	29.97
Kirl Oil Engine	336.24	11.88	146.94	401.67	130.68	670.06
Patni Computer	235.11	25.90	78.36	-12.51	52.85	-24.35
Kirloskar Bros	193.93	21.15	78.15	455.83	71.63	833.90
Finolex Ind	176.21	-24.83	31.10	-47.36	9.57	-66.29
Sai Service	171.63	16.10	4.07	40.83	1.33	160.78
Kalyani Steels	150.54	-28.84	63.23	219.18	50.50	562.73
Finolex Cables	145.19	-8.89	16.26	1.06	5.71	14.20
(Figures in Rs crore)

Bank of Maharashtra and Patni Computer have their registered offices in Pune. Two-wheeler giant Bajaj Auto, auto-ancillary maker Bhart Forge, the Kirloskar group, B R Taneja group and P P Chhabria group are based in Pune.

Among multinationals, Alfa Laval, Atlas Copco, Cummins and Whirlpool Industries are located there.

Bajaj Auto's sales grew by 28.91 per cent to Rs 1866.95 crore and its net profit rose 61.63 per cent to Rs 290.81 crore during the quarter ended in September 2005.

Kirloskar Oil Engine's net profit grew by a staggering 670 per cent to Rs 130.68 crore on a Rs 336.24 crore sales turnover which were up 11.88 per cent. Another group company Kirloskar Brothers posted a net profit of Rs 71.63 crore, up 833.9 per cent. Kirloskar Ferro reported a net profit growth of 48.34 per cent to Rs 2.24 crore.

The B N Kalyani group companies also put up a good show with the group flagship Bharat Forge posting 29.8 per cent rise in sales to Rs 376.61 crore.

Its net profit was up 36.85 per cent to Rs 51.55 crore. Though Kalyani Steel posted 28.84 per cent decline in sales, its net profit was 563 per cent.

The other Pune-based companies which did well included Cummins (net profit up 29.97 per cent), Sai Services (net up 160.78 per cent), Sanghvi Movers (net up 133.56 per cent), Taneja Aerospace (net up 374.29 per cent) and D S Kulkarni Developers (net up 831.82 per cent).

Bank of Maharashtra's performance was a disappointment with its revenue declining by 2.97 per cent to Rs 566.78 crore and net profit down by 59.61 per cent to Rs 12.35 crore.