Of the 1,000 companies with net profits of over Rs 100 crore (Rs 1 billion) that have so far announced their results, 30 firms have cornered almost 72 per cent of the net profit and 52 per cent sales of the total during the last quarter of 2004-05.
A Business Standard Research Bureau study showed these 30 firms posted a 54 per cent rise in their net profit during the quarter. Their aggregate sales growth rate was higher at 24.3 per cent.
The rest of the lot (970 companies) accounted for 48 per cent of the sales and 28 per cent of the net profit of the sample and notched 16.4 per cent sales growth and 27.2 per cent net profit growth during the quarter.
Overall, these 1,000 companies have posted a 49 per cent rise in net profit during the quarter, matching its net profit growth of 48 per cent in the quarter ended March 2004.
The sales growth rate during the quarter was 19.6 per cent, much higher than the 13.1 per cent sales growth recorded in the quarter ended March 2004.
There is no slowdown in the pace of the growth of the giants. The pack of 30 profitable companies in the sample have posted an ascending growth rate in sales and profits in all four quarters of 2004-05.
The net profit of these 30 companies increased by 31.2 per cent in the quarter ended June 2004, 37.2 per cent in the quarter ended September, 49.3 per cent in the quarter ended December and 54 per cent in the last quarter.
The remaining 970 companies, however, tell a different story. The sales growth rate of these companies soared to 35 per cent in quarter ended June 2004, declined to 14.7 per cent in the quarter ended September, rose to 17.6 per cent in the quarter ended December but fell again to 16.4 per cent in the quarter ended March 2005.
The aggregate net profit growth rates of these 970 companies was 35 per cent in the June quarter and 37.1 per cent in the September quarter. The decline started in December with net profit growing at 29.8 per cent. In the March 2005 quarter, it dropped further to 27.2 per cent.