MUMBAI, MARCH 6: The third quarter (October-December 1999) financial results of 418 IDBI-assisted companies hint at industrial recovery witnessed in the first two quarters of the fiscal 2000. This is also corroborated by the resurgence particularly seen in the manufacturing sector, an IDBI release said on Monday citing the Index of Industrial Production (IIP) data for the third-quarter.The performance of the sample companies during the third-quarter of 1999-2000 shows an increase in net sales of 18.1 per cent to Rs 44,289 crore from Rs 37,492 crore in Q3 of 1998-99. While total income went up by 18.3 per cent to Rs 45,707 crore from Rs 38,642 crore, cost of production (including depreciation) increased by 16.4 per cent to Rs 39,963 crore from Rs 34,343 crore in Q3 1998-99.
Gross profit (after depreciation but before interest) increased by 33.6 per cent, rise in interest expense was 14.9 per cent, the share of interest in total cost of production (including interest )showed a marginal decline from 6.7 per cent in the third quarter 1998-99 to 6.6 per cent in Q3 1999-2000. Net profit of the sample companies registered an increase of 60 per cent to Rs 2,452 crore from Rs 1,533 crore. The gross margin and net margin on sales improved to 13.0 per cent and 5.5 per cent respectively in Q3 1999-2000 from 11.5 per cent and 4.1 percent in Q3 1998-99.
The study also indicated an increase in sales turnover of all the industry groups during the third quarter of 1999-2000, major industry groups with above-average growth in sales were aluminium, motor vehicles , fertilisers, cables, textiles, petro-products,sugar, multi-product companies, basic chemicals and electronics.
Net sales of the sample 418 companies in the first nine months of 1999-2000 increased by 14.8 per cent to Rs 1,26,375 crore from Rs 1,10,104 crore in the corresponding period of 1998-99, while total income increased of 14.6 percent, cost of production (including depreciation) increased by 13.4 per cent to Rs.1,13,299 crore from Rs.99,877 crore.
Depreciation went up by 12.9 per cent, gross profit (after depreciation but before interest) increased by 23.8 per cent, interest expenses increased by 13.8 per cent.
The share of interest in total cost of production (including interest) at 6.8 per cent remained same at the previous year's level, net profit of the sample companies went up by 36.6 per cent to Rs 6,660 crore from Rs 4,876 crore, gross margins and net margins on sale improved to 12.8 per cent and 5.3 per cent respectively during April December 1999-2000 from 11.9 per cent and 4.4 per cent in April-December 1998-99.
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