P K Dey Even as the debate over the effect of the global meltdown on India continues, one section of corporate India is holding the flag of the India story high. The second quarter for the key industrial houses in India has been a tad different from the entire India Inc. While India Inc witnessed a more than 15% slide in net earnings and 30% growth in revenue, the big industrial houses have managed to minimise the slide in earnings and maintain strong revenue growth.
The top 100 industrial houses or business families have seen total sales increase by 36.4% to touch Rs 2.36 lakh crore in July to September 2008, against Rs 1.73 lakh crore in July to September 2007. And in absolute terms, the total net profit of the 100 largest business houses has decreased 2.1% to Rs 20,972 crore in July to September 2008, from Rs 21,429 crore in July to September 2007. Also while other income of India Inc fell due to tough market conditions, the total other income of the studied houses increased 5% to Rs 5,663 crore in July to September 2008, from Rs 5,394 crore during July to September last year. "This clearly shows that the industrial houses have managed to work their companies well and build on the synergies and interdependencies that exist within the group. Usually standalone companies do not have this advantage," says Rajesh Majethia, a Mumbai-based equity analyst. And this, he says, has some of the industrial houses get a premium rating in the market place. Around 11 groups or houses actually clocked a 45% increase in net profit, and this is staggering at a time when there is widespread slowdown. Mention may be made of Hero Group of the Munjals, Adani, Torrent, Sriram Thyagaraj, Lloyds, Alchemie Group and Nava Bharat. While the Mukesh Ambani-owned group topped the list with sales of Rs 44,804 crore in July to September 2008, the Sanjay Dalmia Group featured at the bottom of the pecking order came last with Rs 359 crore. Of the remaining houses, Tata,Aditya Birla Mgmt Corp, Essar and Jindal Om Prakash had sales exceeding Rs 90,00 crore each. Mukesh Ambani's company, top in terms of sales, in Jul-Sept 2008 showed a growth of 39.8% and 7.4% in sales and net profit respectively. On the other hand, a significant growth rate in sales was also seen in the case of Murugappa, Ispat-MPK, Welspun, Excel Shroff, Lloyds, Alchemie Group, Sriram Thyagaraj and Apar Group.. Mukesh Ambani's group accounted for 18% or more of the total sales of the top 100 business houses in both the quarters two three month period under study. The ratio of profit after tax to sales of 100 business houses decreased from 12.37% in July to September 2007, to 8.88% in July to September 2008. High hopes .I India Inc witnessed more than 15% slide in net earnings and 30% growth in revenue .I Total sales of top 100 industrial houses increased 36.4% to touch Rs 2.36 lakh crore in July-Sep 2008 .I Other income of these houses increased 5% to Rs 5,663 crore during July-Sep 2008, from Rs 5,394 crore during July to September last year http://www.financialexpress.com:80/news/big-industrial-houses-hold-fort-in-trying-times/389433/ Opportunity is missed by most people because it is dressed in overalls and looks like work. Thomas A. Edison --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
