Steel cos ride high in Q3

Following increase in production and realisations, steel sector companies bagged top slots in terms of profitability at an impressive 150% growth in the quarter ended December 31, 2004, followed by the hotel industry and cement players.

The Information Technology (IT) sector, though at the fifth place in terms of profitability, plucked the top slot in terms of revenue, growing by 49%, according to an Eco Pulse Survey on Q3 results by industry chamber ASSOCHAM.

Steel sector bagged the second spot in terms of revenue growth, clocking 39% growth.

"The spectacular rise in revenue in the steel sector has been on the back of increase in both the production and realisations. Some of the companies like Tisco, Sail and Jindal Stainless could command higher realisations because of their focus on value-added and finished products," Assocham chief Mahendra K Sanghi said.

The hotel industry, with an impressive increase in the number of tourists which went up to three million, were ranked the second best in terms of net profit - an increase of 110%.

"Coupled with 31% growth in revenue as well, hotels had a good run in the quarter-ended December 2004, thus becoming the second runner-up with respect to revenue growth. The surge in the occupancy rates and average room rentals contributed to the robust growth in the hotel industry," the survey said.