Small caps shine in Q4 scorecard
Profit boom - For the quarter ended March 2010, Corporate India saw net profit grow at a healthy rate of 26 per cent, reports Sandeep Singh.business Updated: May 02, 2010 22:14 IST
Even as the global uncertainties continue to prevail, India Inc has come out with strong numbers for the quarter ended March 2010 and has seen the overall net profit figure grow at a healthy rate of 26 per cent over the past one year.
An analysis of 150 companies from the list of BSE 500 that have come out with their results show that the revenue growth of 36 per cent has been stronger than the profit growth over the corresponding quarter last year. While large cap companies have witnessed higher growth in their revenues, it is the small cap companies that have seen a higher rise in their margins.
"It was the small companies that saw their margins shrink during the slowdown in the financial year 2008-09 and so there has been a larger recovery there," said the head of a mid-sized fund house on condition of anonymity.
Even on a sequential basis the list of companies saw the profits grew by 8 per cent and the net sale grew by close to 6 per cent.
The profit growth for the small cap companies stood at 190 per cent as it grew from Rs 409 crore to Rs 1,188 crore for the group of companies in the list. The profit for the group of mid cap and small cap companies grew by 34.6 and 21 per cent respectively. The profits for the group of companies in the mid cap rose from Rs 3,995 crore to Rs 5,376 crore and for the group of large caps it rose from Rs 19,554 crore to Rs 23,667 crore.
Among the sectors it is the metals, sugar and two wheeler segments that have done better than the others.
The high commodity prices have resulted in high growth for the companies in the metals sector. On the other hand, the banking sector, which saw its revenues shrink by 0.7 per cent as a result of the fall in the interest income, witnessed a rise in its profits by 17 per cent on account of fall in interest expenditure and rise in fee-based income.