Bucking the overall bearish trend in the economy, two of every five
companies in India Inc have apparently registered better growth in terms of revenues for the year ended March 2008-09 as compared to 2007-08, according to Economic Times Intelligent Group, the research arm of Economic times.
Around 1,050 companies were studied, of which as many as 400 firms reported higher growth rate of net sales for FY09. The performers were from various sectors like information technology, sugar, agricultural inputs, auto, cement, pharmaceuticals and FMCG. Some renowned firms who have registered better revenue growth despite the meltdown in the economy are the largest two-wheeler manufacturer Hero Honda, Axis Bank, Cipla, Coromandel Fertilisers, the second largest phosphatic fertiliser producer in India, State Trading Corporation, Infosys, MRF and UltraTech Cement.
Though better sales may have been recorded due to higher inflation, which led to the increase in prices of products, which come down over the last one quarter, it also means that demand has not been impacted to any great extent. However, the total number of firms reporting revenue growth over the previous year declined to 700 compared to 800 firms which recorded revenue growth in FY08 over FY07.
Though prices of raw materials peaked last year and even the interest rates were quite high, the companies improved their performance. Nearly 180 companies, about one sixth of the sample reported better net profit compared to the previous year. Numerous banks have also reported better results on the back of higher interest and treasury income.
About 60 companies moved out of the red, 50 firms managed to cut losses and around 35 firms reported lower decline in profits. Of the 1,050 firms in the sample 80 percent reported profits as compared to 90 percent profit making firms previous year.
The companies which came out of the red to clock profits include, Escorts, Mysore paper mills, Kinetic Motors, Eveready Industries, Balrampur Chini Mills and Dunlop India. Find
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