Software Tops 9-Month Profit Scorecard

No matter if there is a pressure on overseas billings for software companies. In the nine months of the current fiscal, the software sector has displaced the manufacturing sector from the top slot in terms of aggregate net profit.

The aggregate net profit of Rs 2,749 crore achieved during the nine months ended December 2001, gives software the top position among all other manufacturing and service sectors taken for the study. Banks and term lending institutions were, however, not considered for the study.

Refinery sector, which continued to be ranked at the top in terms of sales, relegated to the second position with aggregate nine months' net profit of Rs 2,740 crore. Petrochemicals sector at number three with net profit of Rs 2,273 crore was followed by telecommunication with aggregate net profit of Rs 2,162 crore, pharmaceuticals Rs 1,686 crore, personal care Rs 1,529 crore and power Rs 1,462 crore.

Interestingly, the other income has played a major role in shoring up the bottomline of the manufacturing sector, but not the software sector. Software companies are the clear winner with an aggregate profit of Rs 2,262 crore if adjusted for other income of Rs 487 crore.

Telecommunication sector, with adjusted net profit of Rs 1,451 crore, rose to second spot, displacing refinery sector which relegated to the third position. Refineries rank third (Rs 1,438 crore), pharmaceuticals at number four (Rs 1,409 crore) and petrochemicals at number five with net profit of Rs 1,351 crore.

The software sector ranks first with net profit margin (NPM) of 20.67 per cent, gaining two notch over its third position during the corresponding nine months of the previous year. Aluminium sector continued to hang around the second position, though its NPM down to 19.64 per cent from 25.30 per cent in the previous year.

Entertainment sector has been relegated to third spot from the first position held last year. The NPM of entertainment declined to 18.78 per cent from 26.75 per cent. Telecommunication was at fourth position with NPM of 16.90 per cent and oil drilling at number five with NPM of 14.64 per cent.