Business
A DNA Money survey of 40 early birds shows an impressive 38% topline growth in the quarter ended June, 2006. A report.
Updated : Sep 14, 2017, 03:39 PM IST
MUMBAI: India Inc continues to blaze the growth trail - and at a faster clip. If the trends set by companies that have already come out with their first quarter (Q1) results are sustained through the rest of this month, it will be a great start to fiscal 2006-07.
A DNA Money survey of 40 early birds shows an impressive 38% topline growth in the quarter ended June, 2006, the highest in the last five years. On the net profit front they have notched up 49% growth, the second largest in the past five years.
The same set of companies had 26% net sales growth in Q1 of 2005-06, 29% in 2004-05, 18% in 2003-04 and 21% in 2002-03. In terms of net profit, they had reported a 22% rise in Q1 of 2005-06, 66.5% in 2004-05, 28.5% in 2003-04 and 6.9% in 2002-03.
The aggregate net sales of these 40 firms grew from Rs 5,619 crore in Q1 last year to Rs 7,747 crore in Q1 of 2006-07 and their net profit rose from Rs 861 crore to Rs 1,284 crore.
As many as 18 companies in the sample reported more than the average 38% rise in net sales, ranging between 41% and 2,259%. In the case of net profit, 13 firms recorded profit growth above the 49% average - in the range of 100% to 9,910%.
The companies that have posted smart results were from sectors like software, construction, steel, mining, shipping and engineering.
So far, only two big companies, namely, Infosys Technologies and Bajaj Auto, have announced their Q1 results. Infosys Technologies recorded 46% revenue growth and 50% net profit growth in Q1. Bajaj Auto had a 35% topline growth and 27% bottomline growth during same period.
Of the sample 40 firms, nearly three-fourths posted gains in net profit while in the case of the balance one-fourth the net profit has declined. The notable players included Himadri Chemical (net profit up 956% to Rs 12.78 crore), Aro Granite Industries (net up 228% to Rs 4.16 crore), BSEL Infrastructure (net up 220% to Rs 10.99 crore), Crisil (net up 188% to Rs 16.02 crore) and Visaka Industries (net up 136% to Rs 9.19 crore).
Emmsons International, IG Petrochemicals and Oil Country Tubular turned around during Q1. Star Company (net down 57%), Salora (41%), Tata Metaliks (32%) fared worse this time.