Companies & Sectors
March quarter results: Cost pressures eat into robust revenues of mega-cap companies

For the March 2011 quarter, 107 mega-cap companies in the Moneylife sample recorded sales growth of 23% overall, but only an 11% growth in profit, due to rising costs

Mega-cap companies (defined as those with more than Rs10,000 crore market capitalisation) recorded a sales growth of 23% (aggregate sales Rs7,01,421.81crore, in the Moneylife sample). However, operating profit growth was 11% (aggregate operating profit Rs 1,20,284.48 crore), and net profit grew by 11% (aggregate net profit Rs73,323.99 crore). The Moneylife sample consists of 1,300 companies, of which 107 companies are mega-cap companies.

One of the high performers by revenue growth among the mega-cap companies was Yes Bank, with 71% growth (quarterly revenue Rs1,409.37 crore). Its operating profit growth was a robust 35% (quarterly operating profit Rs348.77 crore) and net profit growth was a stupendous 45% (quarterly net profit Rs203.38 crore).

Mangalore Refinery & Petrochemicals was one of the highest performers by operating profit which rocketed by 92% (operating profit was Rs864.86 crore) from a low base. Its sales growth was 43% (Rs12,414.43 crore) and net profit growth was 118% (Rs552.86 crore).

On the basis of net profit growth, Reliance Communications was a high performer with 117% (net profit Rs574.23 crore). The company's operating profit grew by 122% (operating profit Rs456.54 crore). However, this was simply because the March quarter profit last year was low. Indeed, in the first three quarters of last year it recorded losses. This is reflected in its revenue growth which was actually down by 6% for the March quarter.

Petronet LNG was an excellent performer by all the three parameters: sales growth was 67% (revenue of Rs3,985.97 crore), operating profit growth 74% (operating profit of Rs351.31 crore), and net profit growth 112% (net profit of Rs206.28 crore). Godrej Consumer Products was a similar robust performer on all three parameters: sales growth of 130% (revenue of Rs655.72 crore), operating profit growth 79% (operating profit of Rs131.03 crore) and net profit growth 75% (net profit of Rs110.58 crore).

The laggards among the mega-cap companies were Oil & Natural Gas Corporation (sales growth just 1%), Steel Authority of India (revenue decline of 1%), Reliance Capital (fall in operating profit by 58%) and Ranbaxy Laboratories whose operating profits collapsed into a loss in the March quarter.

ONGC recorded sales of Rs16,107.93 crore, operating profit of Rs7,972.28 crore (down 15%), and net profit of Rs2,790.86 crore (down 26%). Steel Authority of India recorded sales of Rs12,130.38 crore, operating profit of Rs2,204.64 crore (down 29 %), and net profit of Rs1,507.12 crore (down 28%).

Reliance Capital had revenues of Rs733.85 crore (up 33%), operating profit of Rs50.22 crore (down 58%) and net profit of Rs112.37 crore (up 33%). Cadila had sales of Rs695.55 crore (up 22%), operating profit of Rs100.82 crore (down 32%) and net profit of Rs89.76 crore (down 31%). Ranbaxy had sales of Rs1,095.81 crore (down 43%), operating loss of Rs76.59 crore and net loss of Rs52.91 crore.


Lagarde pitches for 40% hike in India’s IMF quota

“For India to be properly represented, we have to increase its quota by 40% and its voice by the same amount. I think that process is an ongoing process... I would certainly support if I am elected (as IMF chief), I would continue that trend of reforms,” French finance minister Christine Lagarde said

New Delhi: Pitching for an increased role for India in world economic affairs, French finance minister Christine Lagarde—the top contender for International Monetary Fund (IMF) chief post—on Tuesday said the country’s quota at the multilateral agency should be raised by 40%, reports PTI.

Ms Lagarde’s stance comes even as India is non-committal on supporting her candidature for IMF’s managing director post.

“For India to be properly represented, we have to increase its quota by 40% and its voice by the same amount. I think that process is an ongoing process...,” she told reporters here.

According to Ms Lagarde, the IMF should reflect current global economic realities and there is need for greater voice for emerging markets, developing countries in all significant issues confronting the global economy.

India has a quota of 2.34% in IMF, which has 187 countries as members. The US is the largest shareholder in the multilateral lending agency with 16.8% quota share.

“... Size of the economy, contribution to the (global) GDP and the population really has to be taken into account (when looking at representation of emerging nations).

“I would certainly support if I am elected (as IMF chief), I would continue that trend of reforms,” Ms Lagarde noted.

The reform process at the IMF has been set rolling after the 2008 global financial crisis that severely impacted the developed nations.

Ms Lagarde, who was on a day-long visit to the capital, met prime minister Manmohan Singh, finance minister Pranab Mukherjee and Planning Commission deputy chairman Montek Singh Ahluwalia.

In discussions with her Indian counterpart, Mr Mukherjee, the French finance minister outlined her vision for reforms that IMF needs to undertake as well as the role that the multilateral agency can play in addressing global economic challenges.

On Eurozone debt crisis, Ms Lagarde said that work is in progress for a compliment package for Greece, Portugal and Ireland—which have been severely hit by the turmoil.


HC dismisses bail pleas of Kanimozhi, Sharad Kumar

The court dismissed their bail pleas saying that there are prima facie evidences against them. Ms Kanimozhi and Mr Kumar were named by the CBI for allegedly receiving a kick-back to tune of Rs200 crore

New Delhi: The Delhi High Court on Wednesday dismissed the bail plea of Dravida Munnetra Kazhagam (DMK) MP Kanimozhi and Kalaignar TV MD Sharad Kumar, accused in the second generation (2G) spectrum allocation case, saying there are prima facie evidences against them, reports PTI.

“There are certain prima facie evidences against the accused. Considering the complicity of the accused in the offence, the bail applications are dismissed,” justice Ajit Bharihoke said.

Ms Kanimozhi’s mother Rajathi Ammal and DMK parliamentary party leader TR Baalu were present in the courtroom when the order was pronounced.

Ms Kanimozhi, the 43-year-old daughter of DMK supremo M Karunanidhi, and Mr Kumar were named by the Central Bureau of Investigation (CBI) for allegedly receiving a kick-back to tune of Rs200 crore.

Both Ms Kanimozhi and Mr Kumar have 20% stake each in Kalaignar TV Pvt Ltd which allegedly received Rs200 crore through a ‘circuitous’ route from Shahid Balwa-promoted DB Realty.

DMK chief’s wife Dayalu Ammal, who has been left out of the list of accused, owns the remaining 60% shares in the television channel.

Ms Kanimozhi and Mr Kumar had moved the high court on 23rd May challenging the trial court’s order which had rejected their bail pleas, saying the offence attributed to them was grave and the possibility of influencing the witnesses cannot be ruled out.

CBI special judge OP Saini had on 20th May rejected the bail pleas of Ms Kanimozhi and Mr Kumar and ordered their ‘forthwith’ arrest. They are currently lodged in Tihar Jail.

Ms Kanimozhi, who sought bail in the special court on the ground of being a woman, had approached the high court seeking relief citing the need to look after her school-going child who is devoid of her care as his father is working abroad.

Justice Bharihoke had on 23rd May dismissed bail pleas of five corporate honchos, including Unitech Group MD Sanjay Chandra and Reliance ADAG MD Gautam Doshi in the case, saying there was a possibility that they may influence the witnesses.


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