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Mid-cap companies beat biggies in Q2 performance
By siliconindia
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Monday, 08 November 2010, 21:20 IST
Bangalore: In the latest September quarter mid-cap companies have outperformed their larger rivals in profit growth with a year-on-year profit growth of 28 percent against the 12 percent by large-cap companies. Their performance in the latest quarter is also in sharp contrast to the 12 percent profit drop recorded in the June quarter, reports Srividhya Sivakumar from Business Line.
Even the small-cap companies too reported an improvement in sales and profit. These companies delivered sales and profit growth of about 22 percent and 13 percent respectively in the September quarter against the 20 percent and 4 percent in the June quarter.
Profits of 1,420 companies that have declared their results for the just-ended September quarter grew about 13 percent over the same period last year. This is almost twice the growth rate reported in the June quarter. Sales growth for the September quarter was at about 19 percent, lower than the 23 percent growth delivered in the first quarter.
Sales grew on a sequential basis by about 8 percent over the June quarter. The sample set of companies had actually registered shrinkage of 6 percent in sales in June quarter. Cost pressures ease. Companies expanded their net profit margins to 10.4 percent from 10.1 percent reported in June quarter, helped by a lower interest outgo.
Retail, textiles, pharmaceuticals, and large IT firms are some of the sectors that have done well this quarter while auto and auto components too have sustained revenue growth. The sales and profit growth numbers in the quarter have also registered an improvement over that reported in the same period last year.