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Potential entrants to the $1 B club in India raise hopes
By agencies
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Tuesday, 09 August 2005, 19:30 IST
MUMBAI: Improving quarterly sales have resulted in many new corporates emerging as potential entrants into the $1 billion (Rs 4,300 crore) Club. Companies with over Rs 1,000 crore sales in the first quarter of 2005-06comprises of 54 companies.
These are wannabe members of the elite club, if they manage to keep up the same growth rate through the next three quarters. This is of course, by no means certain, since many factors impact corporate performance. Also, a linear projection of one quarters results is at best a rough-and-ready method of calculating annual results.
Apart from the heavyweights like Indian Oil, Reliance Industries, ONGC and State Bank of India, many debutantes have figured in the list. These are Satyam Computers, Tata Power, Jet Airways, JSW Steel, Bharti Tele-Ventures, TCS, Videocon International, ACC and Ashok Leyland, all of which have hoisted them into the $227 million group. In comparison, all of them had quarterly sales of less than or close to $227 million during the April-June period last fiscal (2004-05).
The commodity cycle, consolidation of group companies and new initial public offers (IPOs) has helped the elite group grow, say industry analysts.
Of the 54 companies with over Rs 1,000 crore sales in the first quarter, a majority has shown sales growth of 20-35 percent during the last quarter, with the exception of Chennai Petroleum, BHEL, Sterlite Industries and JSW Steel.
A similar query on the net profit growth (companies having quarterly profit of over $227 million) has, however, not thrown up any new names. In terms of net profit, the $1 billion Club is likely to have just five old members ONGC, RIL, NTPC, SBI and SAIL.
As many as 138 companies (out of all the companies which have declared their results) have doubled their sales during the quarter. These include, Videocon Industries, Bajaj Hindustan, Petronet LNG, Lakshmi Overseas, Essar Oil and Sesa Goa.
As per the study, 370 companies have doubled their net profit. These include IBP, Eicher Motors, GSFC, Jaiprakash Associates, BHEL, JK Industries, Essar Steel, Sterlite Industries, JSW Steel, GE Shipping, Essar Shipping, BEML, Sesa Goa, Rajesh Exports, Lupin and Ashok Leyland.