Shipping, steel, metal and pharmaceuticals companies may well pop champagne corks. The net profit in the first half of the current year of 52 of these firms has surpassed their 2003-04 numbers.
According to Business Standard Research Bureau data, the net profit of 52 companies in the first half of 2004-05 was Rs 4,291.57 crore (Rs 42.92 billion), Rs 413 crore (Rs 4.13 billion) higher than Rs 3,878.78 crore (Rs 38.79 billion) in 2003-04.
State-owned Steel Authority of India's consolidated profit during the first six months (April-September) of the current financial year stood at Rs 2,624.74 crore (Rs 26.25 billion), Rs 113 crore (Rs 1.13 billion) more than last year's Rs 2,512.08 crore (Rs 25.12 billion).
Likewise, Bharti Tele-Ventures' net profit of Rs 629.82 crore (Rs 6.3 billion) in the first half of 2004-05 surpassed last year's net of Rs 584.91 crore (Rs 5.85 billion). Essar Steel earned a net profit of Rs 119.83 crore (Rs 1.2 billion) in the first half of 2004-05, Rs 45.26 crore (Rs 452.6 million) more than in 2003-04.
For these comparisons, Business Standard Research Bureau looked at a sample of 700 companies, many of which are mid- and small-cap companies such as Bihar Caustic, Bhagyanagar Metals, Nava Bharat Ferro, Amara Raja Batteries, Batliboi, Facor, Asian Hotels and Ind Swift Laboratories. Soaring exports added to the overall profitability of many of them.
In the case of some companies, the low base in the corresponding two quarters of the previous year was partly responsible for their performance. These include Yokogawa Industries, Indian Seamless Steel, Amara Raja Batteries, Facor, Binani Metals, Aztek Software and FCL Technologies.
Yokogawa Industries posted a net profit of Rs 2.64 crore (Rs 26.4 million) in the first half of the current year against a nominal earning of Rs 200,000 in the last year.
Indian Seamless Steel posted a net profit of Rs 17.03 crore (Rs 170.3 million) in the first half of this year versus Rs 1.61 crore (Rs 16.1 million) in 2003-04.
Similarly, Facor's net profit in the first half jumped 252 per cent to Rs 10.08 crore (Rs 100.8 million) from last year's net profit of Rs 2.86 crore (Rs 18.6 million).
