This sample of companies had posted sales growth of 12.96 per cent and a net profit growth of 24.37 per cent in the full year ended March 2003.
The strong financial performance comes on the back of improved profit margins as well as cost reductions. The gross profit margins of the sample companies in the year ended March 2004 moved up by 79 basis points to 13.20 per cent, while net profit margins increased by 109 basis points to 7.01 per cent.
Interest costs continued on their southward journey, decreasing by 12.52 per cent [Rs 1,255 crore( Rs 12.55 billion)] in 2003-2004.
The big push in sales growth for the full sample of 950 companies came from 366 companies that outperformed the averages, posting sales growth of over 20 per cent.
The net profit of 300 companies increased by over 41 per cent while 98 companies posted a turnaround during the year by posting a net profit of Rs 231 crore (Rs 2.31 billion) in the year ended March 2004.
Around 225 companies continued to be in the red, with an aggregate net loss of Rs 3,355 crore [Rs 3,391 crore (Rs 33.91 billion)]. Commodity companies are back in the limelight, with aluminium, petrochemicals, pharmaceuticals, chemicals and steel companies posting sales growth of over 20
The healthy sales growth also came from sectors such as trading, shipping, information technology, automobiles and auto ancillaries.
The healthy growth in net profits came from sectors such as trading, cement, shipping, engineering, pumps and compressors, tea and chemicals. These sectors posted a net profit growth rate of over 100 per cent each during the year ended March 2004.
The power, steel, pharmaceuticals, paints, forgings and textiles industries chipped in with a net profit growth rate of over 50 per cent each.
On top of that, the food processing, sponge iron, steel strips and wires, leather products, mini steel, power, sugar and food products sectors posted an impressive turnaround during the year.