kiran
18-11-2007, 07:00 AM
India Inc continues to be on a roll as is evident from their earnings for the half-year ended September 30, 2007. Around 444 corporates have recorded a significant improvement in their performance between April and September, with their combined profits crossing the previous full year’s (financial year 2007) figure.
The companies posted a combined net profit of Rs 7,345 crore during the six-month period ended September 2007 compared with Rs 3,698 crore for the full year ended March 2007. The list does not include companies that have narrowed down their losses, but are yet to turn profitable. Further, only those companies that have March closing have been included.
However, during this period sales figures of these companies have not doubled, but margins and other income showed a jump. Sales for the financial year 2007 stood at Rs 1,11,814 crore compared with half-year sales of Rs 64,896 crore for these companies. The other income component stood at Rs 4,093 crore compared with Rs 2,381 crore during the half-year period.
The list includes companies across sectors like oil, energy, information technology and cements, etc. The distinguished performers were Mangalore Refineries and Petrochemicals, DCM Shriram, Financial Technologies, Tech Mahindra, Jubilant Organosys, Shree Cement, Varun Shipping among others.
There are companies that have shown high growth in net profit because of their high growth in sales. The companies that have shown net profit for the first half of 2007-08 higher than that of full year net profit for 2006-07 are spread over large, mid- and small-caps.
Bajaj Capital senior VP - research and financial planning group Sanjeev Kumar Gopalkrishnan says, “Many companies have recorded higher net profits during the period due to steep rise in other incomes. Even after discounting this, there are enough companies that have managed to report a strong growth in both topline and bottomline.”
“It is surprising that some of the companies that came out with IPOs during the past one-and-a-half years have also found a place in this list even though we could not find other incomes to be a major driving factor,” he adds. Many companies have recorded higher net profits during the period due to their other income component.
For instance, Jet airways, which has shown a net profit of Rs 59.24 crore for first half of 2007-08 against a net profit of Rs 27.94 crore for the entire year of 2006-07. The company’s other income rose from Rs 238 crore in the first half of 2006-07 to around Rs 612 crore in the first half of 2007-08. The absence of a higher other income would have affected its performance.
On a broader scale the benefits of economic development and a stock market boom have to an extent benefited the smaller players. This is somewhat reflected in the frenzy in mid- and small-cap space.
ET
The companies posted a combined net profit of Rs 7,345 crore during the six-month period ended September 2007 compared with Rs 3,698 crore for the full year ended March 2007. The list does not include companies that have narrowed down their losses, but are yet to turn profitable. Further, only those companies that have March closing have been included.
However, during this period sales figures of these companies have not doubled, but margins and other income showed a jump. Sales for the financial year 2007 stood at Rs 1,11,814 crore compared with half-year sales of Rs 64,896 crore for these companies. The other income component stood at Rs 4,093 crore compared with Rs 2,381 crore during the half-year period.
The list includes companies across sectors like oil, energy, information technology and cements, etc. The distinguished performers were Mangalore Refineries and Petrochemicals, DCM Shriram, Financial Technologies, Tech Mahindra, Jubilant Organosys, Shree Cement, Varun Shipping among others.
There are companies that have shown high growth in net profit because of their high growth in sales. The companies that have shown net profit for the first half of 2007-08 higher than that of full year net profit for 2006-07 are spread over large, mid- and small-caps.
Bajaj Capital senior VP - research and financial planning group Sanjeev Kumar Gopalkrishnan says, “Many companies have recorded higher net profits during the period due to steep rise in other incomes. Even after discounting this, there are enough companies that have managed to report a strong growth in both topline and bottomline.”
“It is surprising that some of the companies that came out with IPOs during the past one-and-a-half years have also found a place in this list even though we could not find other incomes to be a major driving factor,” he adds. Many companies have recorded higher net profits during the period due to their other income component.
For instance, Jet airways, which has shown a net profit of Rs 59.24 crore for first half of 2007-08 against a net profit of Rs 27.94 crore for the entire year of 2006-07. The company’s other income rose from Rs 238 crore in the first half of 2006-07 to around Rs 612 crore in the first half of 2007-08. The absence of a higher other income would have affected its performance.
On a broader scale the benefits of economic development and a stock market boom have to an extent benefited the smaller players. This is somewhat reflected in the frenzy in mid- and small-cap space.
ET