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| In what is turning out to be one of the best quarters for Corporate India, as many as 383 companies recorded an impressive turnaround in the quarter ended September 2003.
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| These companies posted an aggregate net profit of Rs 999.48 crore in the quarter ended September 2003, compared with a net loss of Rs 941.65 crore in the quarter ended September 2002.
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| The total sales of these companies climbed 45 per cent, and there was a 79 per cent rise in their other income. A 29 per cent decline in interest costs, too, helped.
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| These companies belong to the information technology, pharmaceuticals, steel, engineering, agriculture products, construction, packaging, hotels and entertainment sectors.
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| Of the 383 companies that turned around, 22 reported sales over Rs 100 crore, 17 between Rs 50 crore and Rs 100 crore, and 49 between Rs 20 crore and Rs 50 crore.
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| In the case of 137 companies, sales growth was the sole driver for improved profitability. These companies posted a top line growth of over 45 per cent, which helped them to post a net profit of Rs 225 crore in the quarter ended September 2003, against a net loss of Rs 291 crore in the corresponding quarter last year.
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| Around 112 companies managed to turn around on the back of huge one-off gains. The other income of these companies more than trebled from Rs 60 crore to Rs 215 crore.
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| As a result, these companies posted a net profit of Rs 106 crore in the quarter ended September 2003, against a net loss of Rs 205 crore in the quarter ended September 2002.
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| The turnaround in steel companies came from a mix of higher price realisation and lower interest cost.
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| From an aggregate net loss of Rs 268 crore in the quarter ended September 2002, 17 steel companies posted a net profit of Rs 556 crore in the quarter ended September 2003.
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| Steel Authority of India alone posted a net profit of Rs 505.16 crore in the quarter ended September 2002, against a net loss of Rs 158.35 crore in the same quarter last year.
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| Jindal Vijaynagar Steel posted a net profit of Rs 35.71 crore in the quarter ended September 2002, against a net loss of Rs 77.12 crore in the quarter ended September 2003, and Ispat Industries Rs 3.67 crore (Rs 26.88 crore).
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| Fertiliser companies benefited from the new pricing scheme for urea effective from April 2003. Rashtriya Chemicals and Fertilisers recorded a net profit of Rs 67.48 crore in the quarter ended September 2002, compared with a net loss of Rs 121.67 crore in the same quarter last year.
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| Its sales increased 52 per cent to Rs 859.69 crore from Rs 564.06 crore. |
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