India: Sales and Profits

Here are all public Indian companies, grouped by Industry. The size of the box indicates revenue (2012) and the colour indicates net profit (red is low, green is high). Click on the group to see companies below. Click further to see their financials on IndiaInfoLine.

Economic growth is defined as the increase in the amount of goods and services produced by an economy over time. During late 1990’s and early 2000’s, western hemisphere ruled global economy. With globalization, the scene has slowly started to change. Tremendous economic growth has been observed in Asia and Africa in the last decade.

India Inc. role in driving economy is vital for the nation. Let us now look at India Inc. performance in the year 2012. The following information is based on revenue generated by companies in 2012, categorized into specific industry.

Energy Industry plays a pivotal role in nation’s economic growth. As most of the sectors are dependent on energy. This sector drives other sectors.

Refineries Industry generated maximum amount of revenue in 2012 - Rs. 940K Crores, but had seen only 3.3% growth. Reliance and Indian Oil Corporation were major contributors with revenue, Rs. 340K Cr and Rs 330K Cr respectively. But, Oil Drilling services had seen massive profits. ONGC’s revenue was 90% of total drilling services revenue. Also, Gas Companies like GAIL and Petro net, under Miscellaneous, were highly profitable.

Energy and mining industries in India have always had issues with environmental and human rights departments. Mining Industry in India has been hit by scandals in recent times. Yet, Industry had seen huge profits during 2012. NMDC and Hindustan Zinc grew by 51.2% and 44.4% respectively. And, Coal India elevated itself to 84% in growth.

Coal is the chief source for power generation in India. A growing economy demands extensive power supply across the country. And this can be seen in the above picture. Profit for Power Generation supply Industry was significant. Also, the industry’s growth changed to 16.1%.

Even though commercial vehicle finance company, Shriram Transport Finance Company, grew by 22.7% but overall transportation picture was bleak. Transportation has direct impact on economic development by providing road, rail, and sea and by air services. Transportation sector was a bit disappointing. Automobiles and motorcycles showed some progress but air transportation profit was very low. India’s renowned brand Kingfisher, did not help air transportation in any way as its growth fell by 15.6%.

A new and distinct area emerged to accelerate India’s growth. India is also known as Soft Power of the world because of its talent and growth in software Industry. This sector has immensely helped India bring in major investments to other sectors. TCS, Infosys, HCL and Wipro collectively amassed Rs. 107 Cr in revenue. All the companies had seen progress in 2012 except Satyam Computers.

Pharmaceutical Sector’s net revenue was Rs. 74K Cr and saw mighty profits during 2012. Health Sector in India, is now seen as one of the big billion dollar industries of future. A segment of it is Pharmaceutical Indian Drugs, which are slowly being recognized in the world. Its development is crucial to India. Primal healthcare surprised everyone with 70% change in growth. It had 25% share of the total pharmaceutical sector’s revenue. Another eminent Pharmaceutical Bulk drug formulation company, Ranbaxy Labs, dropped their profits significantly and had negative growth of 30.1%. CIPLA, Dr. Reddy’s and Aurobindo added more money to their profit bags.

Most interesting industry of all is Cigarettes. Even though it has only one major player, it grew by 21%. ITC ltd generated more than 90% of the total industry’s revenue.

Though Reliance refineries generated 330k Cr in revenue, its overall performance was way below expectation. It had seen major developments in power sector – Reliance power was up by 58.2% and Reliance Infra changed to 10.5%. Reliance had extreme setbacks from Reliance Communication and Reliance media. Reliance communications saw negative growth of 5.6%. And, Reliance media shrunk by 43%.

Tata’s are one of the oldest and wisest business players in India. Tata’s had a decent year, 2012. TCS, Tata Steel and Tata power boosted their profits by generating total revenue of Rs. 72k Cr. Tata Motors and Tata telecommunications had not seen much growth during 2012.

Birla received major chunk of profits through Birla Cements with growth rate of 13.1%. Textile and small scale Birla Industries did not progress much. And, finance sector dipped by -8.1%

Companies in textile products, sugar and telecommunications sector had a bad year with very low profits and negative growth.

  • Only one major player in Telecommunication, Bharathi Airtel, was highly profitable with revenue of Rs. 38K Cr
  • Most of the textile industries struggled to increase their profits in 2012. Grasim industries had a successful year with growth rate of 23.8%.
  • Sugar Sector had a very unpleasant year in 2012.

Refineries Steel Large Power Generation Supply Trading Computers Software Large Oil Drilling Allied Services Constructi. Electric Equipment Telecommun. Service Provider Engineerin. Turnkey Services Fertilizer. Automobile. LCVs HCVs Diamond Cutting Jewellery Gas Distributi. Mining Minerals Metals Steel Medium Small Finance Investment. Pharmaceut. Indian Bulk Drugs Formln Solvent Extraction Auto Ancillarie. Chemicals Aluminium Aluminium Products Automobile. Passenger Cars Cement North India Textiles Products Automobile. Tractors Automobile. Motorcycle. Mopeds Textiles Manmade Personal Care Multinatio. Textiles Cotton Blended Cigarettes Engineerin. Finance Housing Finance Term Lending Institutio. Sugar Transport Airlines Tyres Computers Software Medium Small Food Processing Indian Diversifie. Mega Automobile. Scooters Wheelers Plastics Products Steel Sponge Iron Pharmaceut. Indian Bulk Drugs Transmisso. Line Towers Equipment Packaging Breweries Distilleri. Textiles Processing Paints Varnishes Computers Hardware Miscellane. Castings Forgings Domestic Appliances Cement South India Personal Care Indian Paper Logistics Entertainm. Electronic Media Software Pesticides Agrochemic. Indian Shipping Electronic. Components Engines Petrochemi. Electronic. Consumer Cables Power Hotels Ceramics Tiles Sanitarywa. Cement Products Tea Textiles Spinning Synthetic Blended Chlor Alkali Soda Ash Ship Building Food Processing MNC Healthcare Glass Glass Products Telecommun. Equipment Pesticides Agrochemic. Multinatio. Dyes Pigments Compressor. Drilling Equipment Cables Telephone Air conditione. Cycles Accessorie. Pharmaceut. Indian Formulatio. Diversifie. Medium Small Pharmaceut. Multinatio. Edible Oil Computers Education Textiles Composite Leather Leather Products Steel Pig Iron Fasteners Electrodes Graphites Dry Cells Textile Machinery Infrastruc. Developers Operators Pumps Abrasives Grinding Wheels Diversifie. Large Plantation Plantation Products Textiles Jute Yarn Products Computers Software Converts

As the saying goes “Every day is not a Sunday”. And, this applies to India Inc performance card as well. Overall performance of India Inc. for the financial year 2012 was far below expectation as most of the companies had reported drop in profits. Their low profit margins despite growth in sales may be attributed to rising costs in the nation.