Idbi-Aided Firms & #39; Net Up 44.2% To Rs 5,939 Crore

The net profit of 360 IDBI-assisted public limited companies rose by 44.20 per cent to Rs 5,939.10 crore in 2000-01 as against Rs 4,117.30 crore in 1999-2000.

Net sales of these companies increased by 16.2 per cent to Rs 1,18,407 crore as compared with Rs 1,01,906.30 crore in the previous year.

IDBI, which analysed the financial performance of the 360 companies in 27 industry groups, said the results indicate an overall industrial recovery with financial indicators such as net sales, other income, gross profit and net profit witnessing sizeable growth.

Other income of the said companies was up by 34.9 per cent to Rs 3,408.10 crore (Rs 2,526.40 crore in 1999-2000). Total income went up by 16.6 per cent to Rs 1,21,815.10 crore (Rs 1,04,432.70 crore).

The cost of production including depreciation rose by 15.8 per cent to Rs 1,06,093.60 crore (Rs 91,612.0 crore) while the share of interest in total cost of production declined from 8 per cent in 1999-2000 to 7.6 per cent in 2000-01.

Of the 27 industry groups, 24 groups recorded a positive growth in sales during 2000-01. Information technology (IT) sector recorded the highest growth (55.2 per cent), followed by pharmaceuticals (18.1 per cent), paper & paper products (17.6 per cent) and electricity generation & distribution (16 per cent).

Twelve industry groups registered positive growth in net profit. The groups that saw appreciable growth in the net profit include cement, other chemicals, paper & paper products, IT, electronics, fertilisers and aluminium.

Gross margin on sales for the sample companies during 2000-01 at 13.3 per cent was higher than 12.6 per cent in 1999-2000.

The groups that outperformed the sample average in terms of gross margin are IT (33.5 per cent), aluminium (33.2 per cent), electricity generation & distribution (19.1 per cent), other chemicals (15.3 per cent), electronics (14.6 per cent) and cement (14.4 per cent).