Global slowdown hits industry profits

New Delhi, Nov 12 (UNI) Analysis of second quarter results of organised manufacturing has revealed decline in companies' profits, particularly in the small sector, according to a study commissioned by an industry chamber.

The appraisal of results of 90 companies - 20 large, 40 medium and 30 small - said over 90 per cent small companies suffered net losses in the July-September quarter in spite of recording a double digit growth of 41.43 per cent in net sales, Assocham said.

Profits of 13 of 20 large companies declined by 30 per cent, while but that of 40 midsise companies registered a modest growth of 8.15 per cent, it added.

The apex chamber said fall in the index of industrial production (IIP) for manufacturing sector from 10.6 per cent in April-August 2007 to 5.2 per cent in the same period this year is in sync with performance posted by the 90 companies on the Bombay Stock Exchange (BSE).

Companies with net sales of more than Rs 500 crore in the second quarter are categorised large, those with net sales of Rs 100-Rs 500 as midsize, and which recorded net sales of less than Rs 100 crore are small.

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