The performance of 3,042 companies showed their net sales increasing by 3.7% in the second quarter of 2014-15 compared with 9.4% in the same period of previous year, a study by Care Ratings said.
The study also showed that net profit of these companies grew by 14.7% against a negative growth of 24% in the second quarter of 2013-14. The half-yearly performance for 2,913 companies showed that net sales increased by 6.4% (8.6%) and net profit by 21.6% (6.3%).
However, a sub-sample of 2,986 companies, excluding banks, IT and oil companies, showed that net sales increased by 6.4% in the second quarter this year as against 6.7% in the previous year while net profit increased by 28.7% (-16.6% last year). Lower growth in costs, especially interest costs did assist in pushing the profits up. Consequently, net profit margins increased to 8.1% as against 6.7% in the second quarter of 2013-14.
When looking at the half yearly performance of 2,759 companies, excluding banks, IT and oil companies, their net sales went up by 6.3% in the first half of this fiscal as against 6.9% in the previous year, while net profit rose by 23.4%. Net profit margins increased to 8.4% as against 7.2% in the first half of FY2013-14, the report said.
In the banking sector, the financial performance of 40 banking companies indicate that the aggregate net sales (interest earned) increased by 11.8% in the first half of the current financial year as against 11% recorded in the corresponding period of the previous fiscal. The provisions and contingencies, which include provisions for NPAs declined by 3.9% vis-a-vis a positive growth of 53.7% over the corresponding period in the first half of 2013-14.
The study showed that net profits recorded an increase of 13.1% in the six month period as against growth of 10.8% in the year-ago period. Net profit margin increased slightly to 9.1% in the April-September 2015 as against 9% in the same period last year.
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