Companies with sales of over Rs 1,000 crore have been able to maintain an average 25 per cent growth in sales, while those with sales of between Rs 500 crore and Rs 1,000 crore managed a growth of only 14-15 per cent. The worst hit have been companies with a turnover of less than Rs 10 crore, which witnessed a substantial drop in sales turnover.

Companies with sales of over Rs 1,000 crore: The sample has nearly 18 companies which have sales of more than Rs 1000 crore. Hero Honda, Corporation Bank and Nirma Lt joined the Rs 1000-crore league in 1997-98. Not a single company has reported a drop in sales income although there have been many in the sample who's sales fell. The company's sales actually fell from 14.22 lakh to 13.33 lakhvehicles due to poor demand. In fact, Bajaj Auto has clocked a negative sales growth of 11.48 per cent in scooter sales and 25.87 per cent in mopeds. Even in the case of Indal, the sales increased by mere 1.54 per cent, however, due to substantial drop in interest cost, lower provision for tax and lower expenditure led to 20.58 per cent rise in net profit. Nearly one third of companies' other income has increased by more than 100 per cent. In some cases, it is as high as 334 per cent (Madras Refineries, IDBI and ICICI).

However, in six cases, the other income has fell. With most of the companies cutting costs, the average increase in total expenditure is proportionately lower at 23 per cent than the increase in sales income. Also, the increase in the total expenditure was lower as input prices did not increase in the same rate as in 1996-97. However, the average interest cost shot up by around 34 per cent. Nirma Ltd's interest cost has gone up from Rs 2.28 crore to Rs 12.34 crore, a rise of 441 percent.

Companies with sales between Rs 500 crore and Rs 1,000 crore: There are only six companies in this category and they have hit by the recession. The average increase in sales income has been only 14.82 per cent for 1997-98. These companies were also hit by lower other income and average drop in other income has been 32 per cent with the exception of Indusind Bank where other income has increased from Rs 11.48 crore to Rs 154.83 crore. However, thanks to lower interest cost and expenditure, these companies have been able to show a growth of 32.8 per cent.

Companies with sales of less than Rs 500 crore, but more than Rs 100 crore: There are nearly 41 companies in this category. The average growth registered by these companies in sales has been in the range of 20-22 per cent. Only three companies have reported a drop in sales (Essar oil, Thaigarajar and TVS Electronics) and seven companies have been able to report a growth of more than 50 per cent (some of the companies are Satyam Computer,Pentafour Software and Infosys). There has been a substantial increase in total expenditure mainly on account of rising employee cost in the software companies. Banks have been able save substantially in the total cost (HDFC Bank total expenditure fell from Rs 123 crore to Rs 60 crore and Bank of Punjab from Rs 80 crore to Rs 30 crore). Only ICICI Banking Corporation's expenditure has seen a rise from Rs 161.32 crore to Rs 257 crore.

In this category, interest cost has been dropped by around 15 per cent. These savings in total expenditure, interest costs and tax provision have led to these companies reporting an average growth of 25 per cent for 1997-98. Out 40 companies nearly 8 companies have reported drop in net profit.

Companies with sales of less than Rs 100 crore but more than Rs 10crore: There are 33 companies in this category. These companies have been worst hit by the economic recession. Not only their sales income grew at an average of less than 20 per cent, but were hit by substantialrise in expenditure. The total expenditure increased by 28 per cent. However, in some cases like Pentafour Communications, the rise in income has been nullified by proportionate increase in total expenditure. Under this category, the companies have heavily relied on the `other income' push to maintain their bottomlines. The average increase in other income has been high at 168 per cent.

The average increase in net profit under this category has only been 11 per cent. This increase has been possible only after a 168 per cent increase in the other income, a 19 per cent drop in the provision for taxation and almost no change in the interest cost.