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Manufacturing companies post low profits
By agencies
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Tuesday, 30 May 2006, 19:30 IST
NEW DELHI: Profits in fiscal year 2006 were the lowest of the past four years for manufacturing companies in India. A drop in sales growth and rise in interest burden in 2005-06 have smashed the net profit growth of India Inc.
Results from the 1,450 companies studied, showed that the companies have posted an aggregate net profit growth rate of 26 percent from in 2005-06. A sample of 1,354 companies showed that the highest net profit growth rate of 40 percent was recorded in 2004-05.
In 2003-04, the growth rate was 39 percent and in 2002-03, 36 percent. In 2001-02, the growth rate was 3.69 percent. The study concluded that total sales had dropped to 19 percent in 2005-06 as compared to 21 percent in 2004-05, while the aggregate interest rose 5 percent against a 3 percent decline in 2004-05.
Industries that fared well were non-ferrous metals, cement, steel, bearings, hotels, automobiles tractors, paper and cotton textiles recording over 100 percent growth in net profits.