Sugar sector records highest net profit growth in March 2011
Pratibha Kamath  and  N Madhavan 03 June 2011

The sugar industry has recorded the highest quarterly net profit growth over the same quarter in the previous year. The farm & farm inputs and the energy sectors have also put up a good show

Among the 29 major sectors (out of 49 sectors) tracked by Moneylife, sugar, along with farm & farm inputs, and the energy sectors, have recorded the highest net profit growth over the same quarter in the previous year.

With most of the results of the March quarter of a number of companies already in, Moneylife analysed the aggregate performance of the 29 major sectors that we track.

Companies in the sugar sector recorded the highest net profit growth in March 2011. So far, 1,214 companies out of 1,300 companies in the Moneylife database have declared quarterly results. Net profit of companies that we include in the sugar sector grew by 190% to Rs692.34 crore, while operating profit grew by 80% to Rs1,462.56 crore.

Top companies in this sector include Parrys Sugar Industries, whose quarter-on-quarter (q-o-q) net profit  rose 178% to Rs12.52 crore, and operating profit rose 38% to Rs33.25 crore; Balrampur Chini Mills, whose net profit rose 309% to Rs112.78 crore, and operating profit rose 153% to Rs205.89 crore; Bajaj Hindusthan, whose net profit rose 129% to Rs72.82 crore, while its operating profit rose 121% to Rs317.49 crore; Ugar Sugar Works, whose net profit rose 70 % to Rs30.05 crore, while its operating profit rose 49 % to Rs 56.87 crore; Triveni Engineering & Inds, whose net profit rose 58% to Rs23.53 crore and operating profit rose 13% to Rs57.32 crore.

This level of higher performance has been possible because of the buoyant demand from the consuming masses in the country.

The second-best sector was farm & farm inputs, which notched up a 75% rise in q-o-q consolidated net profit to Rs1,137.88 crore, while the operating profit for the sector for the same period rose 58% to Rs1,708.23 crore. A few of the good performers in this sector include Nagarjuna Fertilizers and Chemicals, whose net profit rose 24% to Rs24.48 crore, while its operating profit rose 16% to Rs120.77 crore; and Jayant Organics, whose net profit rose 252% to Rs2.32 crore, while its operating profit rose 15 % to Rs8.37 crore.
 
The third-best sector has been the energy sector, whose aggregate net profit grew by 67 % to Rs6,737.59 crore, while operating profit grew by 31% to Rs10,044.73 crore.

Some of the good March 2011 quarter profitability performances came from PTC India, whose net profit rose 142% to Rs33.51 crore, while its operating profit rose 264% to Rs34.34 crore; Gujarat Industries Power, whose net profit rose 125% to Rs81.21 crore, while its operating profit grew 107% to Rs122.81 crore; Jyoti Structures, whose net profit rose 38% to Rs35 crore, while its operating profit grew 18% to Rs84.05 crore; and Power Grid Corporation of India, whose net profit rose 37% to Rs751.12 crore, while its operating profit grew by 16% to Rs1,740.68 crore.

Banking sector net profits have gone up by 9% in the March 2011 quarter to Rs13,808.24 crorean impressive performance from the giant-sized sector, while operating profit has gone up by 13% to Rs32,941.45 crore. IDBI Bank's net profit rose to Rs516.25 crore (up 62%), while its operating profit rose to Rs1,166.81 crore (up 36 %). ICICI Bank's net profit rose to Rs1,452.11 crore (up 44%), while its operating profit fell to Rs2,304.93 crore (down 4%). Yes Bank's net profit rose to Rs203.38 crore (up 45%), while its operating profit rose to Rs348.77 crore (up 35 %). Bank of Baroda's net profit rose to Rs1,294 crore (up 43%), while its operating profit grew by 19% to Rs1,945.81 crore . Axis Bank and HDFC Bank had net profits in excess of Rs1,000 crore (up 33%).   

The auto and cement sectors have done reasonably well in terms of growth in net profits of 26% and 24% respectively. The auto sector's net profits were Rs4,073.73  crore, while operating profits were Rs5,289.83 crore. The cement sector's net profits were Rs2,050 crore, while operating profits were Rs3,928.88 crore (up 17%).

The laggard in sector-wise performance has been shippingwhere net profits were down by 87% to Rs49.02 crore while its operating profits were down by 25% to Rs545.40 crore. Although the shipping sector was not profitable, there was one company which achieved net profit growth over the same quarter in the previous year. It was Bharati Shipyardwith a net profit growth of 7% to Rs38.23 crore, while its operating profit grew by 90% to Rs156.57 crore.

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