Cash Inflows Of 42 Sectors Spiral Up

A study of net cash inflows of 105 manufacturing sectors reveal a sharp turnaround by sectors such as textiles- cotton, textiles -manmade fibres, automobiles -heavy commercial vehicles, steel -- both hot-rolled and cold-rolled, and solvent extraction.

As many as 42 sectors registered growth in net cash inflows during the quarter ended June 30, 2002.

The net cash inflows of 19 sectors declined, while 22 sectors remained in the red with negative net cash inflows.

Companies manufacturing consumer electronics, automobiles, capital goods, chemicals, petrochemicals, pharmaceuticals, pesticides and tyres have done extremely well by registering a higher growth in net cash inflows.

 

On the other hand, sectors such fertilisers, steel, electrical equipment, dyes & chemicals and diamonds reported negative net cash inflows.

However, the sectors which have reported negative net cash inflows declined from 30 in April-June 2002, from 38 in April-June 2001.

As many as 15 sectors turned around by registering positive net cash inflows.

Seven others fell into the red with negative cash inflows compared as against positive net cash inflows during corresponding previous quarter.

Textiles firms manufacturing manmade fibre reported a sharp turnaround with net cash inflows turning positive at Rs 203.01 crore compared with negative cash inflows of Rs 6.11 crore in the corresponding previous quarter.

Cotton textiles companies did well with positive cash inflows of Rs 99.98 crore compared with a negative cash inflow of Rs 12.61 crore.

Pesticides companies topped the list with net cash inflows of Rs 88.34 crore during April-June 2002, up 454 per cent compared with Rs 15.94 crore in April-June 2001.

This on the back of 20 per cent growth in sales and a decline in inventories of finished goods.

The inventories of pesticides sector decline by Rs 19.38 crore compared with an increase of Rs 18.82 crore in the corresponding previous quarter.

Pump and compressor manufacturers reported 419 per cent growth in net cash inflows at Rs 36.97 crore on the back of a 24.4 per cent rise in sales.

Trading companies showed 410 per cent rise in cash inflows, while non-ferrous metal companies registered 376 per cent rise in cash inflow.

Petrochemicals firms reported a hefty 255 per cent rise in net cash inflows on account of lower growth in inventories from Rs 741.27 crore to Rs 201.59 crore. The sector reported a modest 5.35 per cent rise in sales income.