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Highest Three-Year Net Sales Growth: Top 10 Companies

We have previously covered those top 10 companies that have posted the highest three-year growth in net profit. In this article we are considering companies that have posted the highest growth with respect to their topline of net sales on a standalone basis. The compounded annual growth rate (CAGR) which is often used to describe growth over a period of time with respect to some elements of the business like sales, operating profit or net profit. We have moved one step further to make it more relevant for investors. Here, we have used some basic filters like a) companies that have posted more consistent growth in their topline in the last four years and b) companies that have posted a topline of more than Rs 100 crore in the last four years.

Company Industry3-Year CAGR (%)YTD Return (%)
IL&FS Transportation Networks  Construction & Contracting 176 27.69
Dhunseri Petrochem & Tea  Plantations - Tea & Coffee 166 7.3
Manappuram Finance  Finance & Investments 154 -18.82
Muthoot Finance  Finance & Investments 96 16.54
Prism Cement  Cement 93 42.48
Southern Petrochemicals Fertilisers 86 2.96
Jaypee Infratech  Construction & Contracting 79 35.69
Jaiprakash Power Ventures  Power - Generation/Distribution 76 16.96
Sumeet Industries  Textiles 73 -17.03
SRS Real Infrastructure  Construction & Contracting 73 11.62
Source: Dion Insight

IL&FS Transportation Networks (ITNL)

ITNL is a well-known name as far as surface transportation infrastructure is concerned. It is one of the largest BOT road operators in India. ITNL was incorporated in 2000 by IL&FS, an infrastructure development and finance company in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure. The company has been involved in the development, operation and maintenance of national and state highways, roads (including urban roads), flyovers and bridges in the states of Andhra Pradesh, Delhi, Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Kerala, Jharkhand and Rajasthan.

On a three-year CAGR basis, the company has reported a growth rate of 176 per cent with respect to its topline. The net profit for the company at the end of March 31, 2012 stands at Rs 2,772.58 crore, witnessing an upward movement from Rs 132.10 crore in FY09. The YTD returns for the stock stood at 27.69 per cent.

Dhunseri Petrochem & Tea

With a production capacity of 13.47 million kg of tea, the company features among the top 10 tea producers in India. The company has a total of 10 gardens in the Assam region. It also has interests in petrochemicals that came into being after the erstwhile South Asian Petrochem was merged with the company in the year 2009. The petrochemical division is one of the largest producers of PET (polyethylene terephthalate) resin in India.

The company has witnessed strong CAGR growth of 166 per cent in its net sales over the last four years ending FY12. It has secured the second spot on our list following the methodology mentioned above. The net profit for the company at the end of March 31, 2012 stands at Rs 1,977.62 crore, witnessing an upward movement from Rs 105 crore in FY09. On a YTD basis the scrip has yielded a return of 7.30 per cent.

Manappuram Finance

Manappuram Finance is a non-banking financial company that is engaged in providing fund and fee-based services in India. Its loan portfolio includes gold loans/loans against gold and hypothecation loans. The company also offers money transfer and foreign exchange services as it has an Authorised Dealer II license from the RBI. As of March 31, 2012 it operated 2,908 branches across 22 states and four union territories. The company was formerly known as Manappuram General Finance & Leasing and changed its name to Manappuram Finance in June 2011.

On the net sales’ front the company has witnessed strong CAGR growth of 154 per cent in its net profit over the last four years ending FY12. The net profit for the company at the end of March 31, 2012 stands at Rs 2,615.55 crore, witnessing an upward movement from Rs 160.50 crore in FY09. The YTD returns have been -18.82 per cent on the scrip.

Muthoot Finance

Muthoot Finance is primarily in the business of providing gold loans. Approximately 99 per cent of its total income comes from its gold loan business. For the company gold loans have a maximum 12-month term and the average disbursed outstanding gold loan amount was Rs 40,611 per loan account as of March 31, 2012. For the year ended March 31, 2012 their retail loan portfolio earned, on an average, interest of 1.86 per cent per month, or 22.34 per cent per annum. Around 69 per cent of the asset under management is from South India.

On the topline front the company has witnessed strong CAGR growth of 96 per cent in its net sales over the last four years ending FY12. The company has secured the fourth slot in the list. The net sales for the company at the end of March 31, 2012 stand at Rs 4,536.67 crore, witnessing an upward movement from Rs 606.20 crore in FY09. The YTD returns have been 16.54 per cent on the scrip.

Prism Cement

The company mainly caters to the north and central Indian markets with its two plants based in Madhya Pradesh and its present capacity stands at 5.6 MTPA with the potential to sell 6 MTPA cement and 0.6 MTPA clinker. The company has also planned for greenfield expansion in Andhra Pradesh with a capacity of 4.8 MTPA. The project is likely to start in FY14. The company also manufactures and sells glazed wall and floor tiles, bath products, kitchen items and laminate and engineered wooden flooring under the Johnson brand, vitrified tiles under the Marbonite brand and industrial tiles as well as tiles for special applications under the Endura brand.

The company has witnessed a three-year CAGR growth of 93 per cent with respect to its topline ending FY12. The net sales for the company at the end of March 31, 2012 stand at Rs 4,503.11 crore, witnessing an upward movement from Rs 629.20 crore in FY09. The company is placed fifth in the list. The YTD returns on the scrip stands at 42.48 per cent.

Southern Petrochemicals (SPIC)

The company is engaged in manufacturing and selling fertilisers primarily in India. It offers urea, a nitrogenous chemical fertiliser that is used in the processing of cotton and textile mills and as raw material for chemical products, dyes and pharmaceuticals. It also provides tissue culture plants and hybrid seeds and operates a semiconductor assembly and test facility which offers integrated circuits packing solutions. The company was incorporated in 1969 and is headquartered in Chennai.

The company has witnessed strong three-year CAGR growth of 86 per cent in its net sales ending FY12. The net profit for the company at the end of March 31, 2012 stands at Rs 2,438.96 crore, witnessing an upward movement from Rs 380.8 crore in FY09. The YTD returns have been a mere 2.96 per cent on the scrip.

Jaypee Infratech

Jaypee Infratech is an infrastructure development company that is engaged in the development, operation and maintenance of the Yamuna Expressway and related real estate projects in the state of Uttar Pradesh. The Yamuna Expressway is a 165-kilometre access-controlled six-lane concrete pavement expressway along the river Yamuna, connecting Noida and Agra. The company also has the right to develop approximately 6,175 acres of land for residential, commercial, amusement, industrial and institutional purposes at five locations along the Yamuna Expressway. It operates as a subsidiary of Jaiprakash Associates.

On the net sales’ front the company has witnessed strong three-year CAGR growth of 79 per cent in its net profit ending FY12. The net sales for the company at the end of March 31, 2012 stand at Rs 3,155.90 crore, witnessing an upward movement from Rs 554.50 crore in FY09. The scrip has yielded a return of 35.69 per cent on a YTD basis.

Jaiprakash Power Ventures

The company owns and operates the 300 MW Baspa-II Hydroelectric Project in Himachal Pradesh, 400 MW Hydroelectric Project in Uttarakhand and the 1,000 MW Karcham-Wangtoo Project at district Kinnaur, Himachal Pradesh. The company is also implementing the 1,320 MW (2 x 660 MW) super critical technology boiler pit head-based Nigrie Thermal Project in the state of Madhya Pradesh which is expected to commence operations in 2013. It has also acquired Bina Power Supply Company from the Aditya Birla Group and is setting up a 1,250 MW coal-fired thermal power plant at Bina in Madhya Pradesh. The group is poised to be a 13,470 MW power producer by 2019.

On the net sales’ front the company has witnessed strong three-year CAGR growth of 76 per cent ending FY12. The net profit for the company at the end of March 31, 2012 stands at Rs 1,615.56 crore, witnessing an upward movement from Rs 296.70 crore in FY09. The YTD returns on the scrip stands at 16.96 per cent.

Sumeet Industries

Based in Surat, the company is engaged in the manufacture and export of polyester yarn, polypropylene yarn, woven fabrics and menthol and allied products. It also exports its products directly, as well as through merchant exporters to Egypt, Saudi Arabia, Syria, South Africa, Nepal, Bangladesh, South Africa, Sri Lanka, Spain, China and Europe.

On the net sales’ front the company has witnessed strong three-year CAGR growth of 73 per cent ending FY12. The net profit for the company at the end of March 31, 2012 stands at Rs 824.48 crore, witnessing an upward movement from Rs 158.60 crore in FY09. The company is placed ninth in the list. The YTD returns on the scrip have been -17.03 per cent.

SRS Real Infrastructure

SRS Real Infrastructure is engaged in the promotion, construction and development of integrated townships and residential and commercial complexes as well as in the trading of building materials. Its real estate operations have a significant spread in the Delhi NCR region. The company has projects in regions like Faridabad, Greater Faridabad, Palwal, Rewari, Kurukshetra, Panchkula and Karjat (Mumbai). The land bank is of approximately 500 acres.

On the net sales’ front the company has witnessed strong three-year CAGR growth of 73 per cent in its net ending FY12. The net profit for the company at the end of March 31, 2012 stands at Rs 724.44 crore, witnessing an upward movement from Rs 140.50 crore in FY09. The YTD returns on the scrip stand at 11.62 per cent.

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