Financial results of 112 companies for the quarter ended December 2002 show that the corporate sector is building on the gains made in the second quarter.

These early birds recorded sales growth of 16 per cent to Rs 13,752.01 crore (Rs 137.52 billion), while their combined net profit was 35.62 per cent higher at Rs 1,795.17 crore (Rs 17.95 billion).

In the available sample of 125 firms, 112 are manufacturing companies. The study shows the corporate sector has made substantial gains through tireless cost cutting. A 14.4 per cent decline in interest costs helped 104 companies show a robust increase in margins.

The gross profit margins increased to 21.42 per cent in the quarter ended December 2002 from 19.49 per cent in the quarter ended December 2001. The net profit margins increased from 11.17 per cent to 13.05 per cent during the same period.

The financial results available so far for the quarter ended December 2002 are not broad enough to forecast a sectoral trend.

The three results from two-wheeler manufacturers show a marginal drop in demand due to a poor monsoon.

The three major companies in the list, Bajaj Auto, Hero Honda and Maharashtra Scooters, showed a 12.32 per cent rise in sales and a 16.93 per cent rise in net profit.

This is on the lower side, because this sector had displayed a robust growth in sales and profits during the past four quarters.

The early results of software companies are also a cause for concern. Though 15 infotech companies aggregated sales growth of 27.55 per cent, their net profit increased a modest 12.65 per cent.

Infosys Technologies arrested the fall with a 45.07 per cent rise in sales and a 24.4 per cent rise in net profit.

Wipro disappointed the markets with a 17.19 per cent rise in sales and a 0.31 per cent decline in net profit.

Results from the cement sector are a mixed bag, with all four companies recording almost stagnant sales but a hefty rise in net profits. ACC's net profit increased 101.83 per cent and that of Shree Cement 156.35 per cent.