IDBI-assisted companies perform well

MUMBAI, June 17: The growth of the private corporate sector in terms of financials during the first half of 1997-98 has indicated a turnarou...

MUMBAI, June 17: The growth of the private corporate sector in terms of financials during the first half of 1997-98 has indicated a turnaround. This is corroborated by analysing the performance of 505 companies assisted by the Industrial Development Bank of India.

Based on their unaudited financial results, the IDBI study says that while the net profit of the sample companies increased by 15.3 per cent to Rs 5,259 crore in April-September 1997 (from Rs 4,564 crore as on September 1996), net sales increased by 12.3 per cent to Rs 77,514 crore during April-September 1997 from Rs 69,052 crore.

The study adds that other income of these companies increased by 14.6 per cent to Rs 1,849 crore while the gross profit increased by 11.0 per cent to Rs 10,332 crore from Rs 9,308 crore. Interest charges were higher by 11.1 per cent during the year under review. The share of interest in the cost of production declined from 6.1 per cent to 6.0 per cent.

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The gross margin on sales (gross profit after depreciation tosales) declined to 13.3 per cent from 13.5 per cent, whereas net profit margin at 6.8 per cent was higher than 6.6 per cent for the preceding year.

Sales turnover most of the industry groups increased during the half year ended September 30, 1997.

Major industry groups with above average growth in sales were textiles (35.2 per cent), fertilisers (31.1 per cent), mining (26.2 per cent), aluminium (17.3 per cent), chemicals (16.4 per cent), electricity generation & distribution (13.7 per cent), food products (13.4 per cent), multi-product companies (13.2 per cent) and non-metallic mineral products (12.4 per cent).