Financial services companies have fared better with a 16.8 per cent growth in sales, but a 8.3 per cent decline in profit after tax. The manufacturing sector had been worst hit with sales increasing 11 per cent, while profit after tax has plummeted 12.6 per cent.

The survey of 1,000-odd companies show that the performance of the manufacturing sector is a significant departure from the earlier trends where, in the first half, the sector has under performed the services sector.

Industries like steel, cement, automobiles and aluminium has been themajor sufferers. 58 companies is the steel sector has posted an aggregate loss of Rs 742 crore as compared with a Rs 242 crore profit in the first half of last year.

Lower price realisation in the cement sector has pulled down aggregate PAT by 51 per cent, while sales have declined 1.5 per cent. The PAT of the textile sector has dipped by a whopping 84 per cent. But for growth of the refinery companies, the PAT of the manufacturing sector would have dipped by 30 per cent.

Among the other sectors that have shown positive growth are software, drugs and pharmaceuticals, tea and coffee. In the manufacturing sector, growth in expenses has out paced sales by one per cent.

Private sector companies have significantly under performed the multinational companies. While the private sector's PAT has declined by 17 per cent, the multinationals have registered a 14 per cent growth in PAT.

The study also reveals that the top 50 business houses have been more badly hit as compared with the others. The rate ofincrease in net sales was lower at five per cent as compared with 10 per cent in the same period of last year, while PAT has declined by 22 per cent against a three per cent increase last year.