Textile firms, NBFCs lead profit pack this season

Despite India Inc slowdown in net profit growth in the quarter ended September 2005, as many as 172 companies managed to go into the black, posting a collective net profit of Rs 364 crore against a net loss of Rs 346 crore. Rise in other income and decline in interest cost scripted the turn-around story.

Out of the 172 companies that registered net profits, 25 are textiles companies and 12 non-banking financial companies (NBFCs). The IT, media and sugar sectors had eight companies each; six of engineering; five from breweries and distilleries, four hotels and three each of plastics and petrochemicals.

While income from other sources helped a fourth (43) of the companies put up a good show, 16 firms reaped the benefit of interest cost.

Siel, Force Motors, Polar Pharma, Bhilwara Spinners, Tips Industries, Simbhaoli Sugar and JCT are some of the companies which went black owing to growth in their other income, which more than doubled during the quarter. JK Agri Genetics went black with a net profit of Rs 4.67 crore against a net loss of Rs 1.56 crore by virtue of the Rs 7.37 crore other income generated through sale of investments.

These 43 firms reported Rs 172.89 crore other income in the July-September quarter, over four times their other income ""Rs 40.35 crore "" from other sources in the corresponding quarter last year. They posted net profit of Rs 94.74 crore against net loss of Rs 54.69 crore. Interest burden of Ashima, Blue Bends, Prakash Industries, Snowcem India, Prima Agro and Millers India declined more than 70 per cent during the quarter.

Better price realisation and reduction in input cost have helped the sugar companies achieve positive growth in their bottomlines. Eight sugar firms together posted Rs 40.03 crore net profit against Rs 25.53 crore net losses in the previous year quarter.

Sakthi Sugars reported a net profit of Rs 8.93 crore against a net loss of Rs 7.07 crore; Oudh Sugar Mills registered Rs 5.17 crore net profit (Rs 1.45 crore net loss) and Upper Ganges Sugar Rs 4.41 crore net profit (Rs 6 crore).

Among other turnaround stories, Himachal Futuristic Communications has posted net profit during the July-September quarter after six quarters of continuous net losses. The company posted net profit of Rs 16.29 crore compared with net loss of Rs 70 lakh in the comparable quarter last year.
 

BOUNCING INTO BLACK
Rs crore	Net Loss/Profit
	Sep 04	Sep 05
Petronet LNG	-16.06	40.03
Himachal Futurist	-6.34	16.29
Atlas Copco	-3.91	12.00
Simbhaoli Sugar	-0.61	11.71
Sakthi Sugars	-7.07	8.93
EIH Ltd	-4.94	8.03
Indian Seam Metal	-2.80	7.86
Prakash Ind	-13.25	6.80
Oudh Sugar Mills	-1.45	5.18
Aksh Optifibre	-8.12	4.48
Upper Ganges	-6.00	4.41

Riding high on 30 per cent growth in sales, EIH reported net profit of Rs 8.03 crore compared with Rs 4.94 crore net losses. Petronet LNG reported net profit of Rs 40.03 crore against net loss of Rs 16.06 crore in last year.

The company has posted 88 per cent rise in sales income to Rs 944.53 crore (Rs 502.09 crore) in quarter.