As many as 130 companies which have posted a turnaround in the quarter ended June 30, 2003, have reported a 25 per cent rise in their market price in the last one month, after the end of the quarter.
Of the 130 companies, 89 actively traded scrips on the Bombay Stock Exchange have reported a 25 per cent rise in market capitalisation from July 1 to August 6 compared to just one per cent rise in the BSE Sensex.
Further, of the 89 stocks, 21 are currently traded at their 52-week highs on the BSE.
These 130 firms posted an aggregated net profit of Rs 630.36 crore (Rs 6.30 billion) during the quarter ended June 2003, as against a net loss of Rs 628.57 crore (Rs 6.28 billion) in the same quarter of the previous year.
The turnaround was possible on the back of a 26 per cent rise in sales and a 23 per cent drop in interest costs. These firms also saw a 41 per cent increase in their other income.
Of the 130 companies, 16 are non-banking financial institutions, nine from the information technology sector, five each from entertainment and cotton textiles, three each from auto ancillaries, shipping, steel and pharmaceuticals sectors.
The Steel Authority of India posted a net profit of Rs 254.69 crore (Rs 2.55 billion) in the quarter ended June 2003 against a net loss of Rs 308.66 crore (Rs 3.09 billion) in the same quarter of the previous year.
This was largely due to a Rs 104.97 crore (Rs 1.05 billion) reduction in interest costs.
The stock has appreciated 28 per cent from Rs 18.45 on July 1 to Rs 23.55 on August 6.
Similarly, Essar Steel reported a net profit of Rs 10.25 crore (Rs 102.5 million) in the June 2003 quarter as against a net loss of Rs 138.22 crore (Rs 1.38 billion) in the June 2002 quarter on the back of Rs 7.44 crore (Rs 74.4 million) reduction in interest costs.
Some companies managed to boost their topline growth with better price realisations. The Shipping Corporation turned into the black with a net profit of Rs 150.25 crore (Rs 1.50 billion) against a net loss of Rs 5.93 crore (Rs 59.3 million) in the same quarter last year.
Indian Petrochemicals Corporation and Jindal Vijaynagar Steel turned into the black with a net profit of Rs 39 crore (Rs 390 million) and Rs 22.92 crore (Rs 229.2 million), respectively in the quarter ended June 2003.
The Bharti Tele-Ventures scrip has appreciated 33 per cent from Rs 39.15 to Rs 52 after the company reported a net profit of Rs 700,000 against a net loss of Rs 7.62 crore (Rs 76.2 million) in the same quarter last year.
Tata Finance turned into the black after posting net losses continuously in the last eight quarters.
The scrip appreciated 115 per cent to Rs 50.60 from Rs 23.50 after the company reported a net profit of Rs 1.22 crore (Rs 12.2 million) against a net loss of Rs 9.76 crore (Rs 97.6 million) in June 2002.
The Automobile Corporation of Goa scrip appreciated 123 per cent to Rs 65.75 (Rs 29.50), Birla Global Finance 73 per cent to Rs 31.40 (Rs 18.10), Chettinad Cement 43 per cent to Rs 79.20 (Rs 55.50) and Amforge Industries 46 per cent from Rs 36.75 to Rs 53.50.
