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138 firms come out with flying colours
B G Shirsat in Mumbai | February 24, 2009 10:50 IST
At a time when corporate India was struggling to post a modest growth in sales and stay away from net losses, 138 companies surprised all with their outstanding performances in all the three quarters of this financial year.
The achievement: the full-year sales and net profit that the 138 companies recorded in 2007-08 came about in the first nine months of this financial year.
The net sales of these outperformers grew by 57.7 per cent, while their net profit rose by 69 per cent in the nine months of the current financial year over the same period of the previous year.
The 138 companies did extremely well in all the three quarters by posting a net sales growth of 61 per cent in the first quarter, 56 per cent in the second and 57 per cent in the third quarter.
The sample of these 138 companies was arrived at by taking into account the following criteria. Only companies with net sales of over Rs 10 crore in 2007-08 were considered for this exercise. From a long list of such companies, the only ones that had posted net profit growth in all the three quarters of this fiscal were shortlisted for growth consistency.
The sample is relatively small and accounted for only 4 per cent of the net sales and 8.8 per cent of the net profit of the corporate sector in the first nine months of this year. These 138 outperformers belonged to various sectors, including auto ancillaries, computer-education, software services (mid-cap), construction (turnkey), fertilisers, food and dairy, oil exploration, pesticides, pharmaceuticals (bulk drugs), ship breaking, tea and transport (logistics).
Among the outperformers, three fertiliser firms -- Coromandel Fertilisers, GSFC and RCF -- recorded a stunning growth in sales on account of higher offtake by farmers and increase in subsidy by the government to compensate for the rise in raw material cost. Coromandel Fertilisers, one of the largest producers of complex fertilisers and DAP in India, almost doubled its profits in the first nine months on the back of a 100 per cent sales growth during the period.