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KOLKATA, April 11

INDO-GERMAN companies listed on domestic bourses have recorded a bottomline growth of 28.54 per cent during the three months ended December 2002 compared to the corresponding period of the previous year, a review conducted by the Indo-German Chamber of Commerce and based on the latest available quarterly figures has indicated.

The 24 joint ventures considered by the chamber registered a 3.36 per cent increase in their total income during the period under review vis-a-vis the same period last year.

The lead was taken by the auto component sector, in which six joint ventures operate. These are Bharat Gears, FAG Bearings, GKN Driveshafts, Goetze India, Kalyani Brakes and MICO — which have seen their combined topline moving up by 8.74 per cent during this period. The engineering players — ABB, Siemens, KSB Pumps and Wendt India — have also delivered positively, thanks to a 33.69 per cent rise in net profit.

Mr Kunal Kundu, Economist with the chamber, attributed the performance on the stock market to several factors, including the high commitment displayed by the parent companies. Shareholding patterns indicate that parent holding in as many as in 18 of the 24 outfits is over 50 per cent.

``These companies have displayed an ability to withstand competition through strong focus on cost restructuring. This have been achieved through measures such as debt recast and VRS offers'', he said.

As for the former, companies have tried to replace high-cost debt. More than 10 of them have a debt-equity ratio of less than 0.25, while six have reportedly gone in for manpower rationalisation through the VRS route.

Also, in some cases, companies have exited non-core businesses or sold idle assets or have bought back shares in order to increase shareholder value, it is pointed out.

On another front, companies shipping goods out of India have generally recorded improved export performance. India, the chamber feels, is now being looked as a key base for outsourcing. Strengthening of the euro has further helped the situation.

The companies that did not perform so well included Aventis Pharma and Merck India. The two pharma outfits recorded an unsatisfactory quarter, marked by a 8.56 per cent drop in their combined bottomline despite a 2.5 per cent topline growth.

The chemicals sector too did not fare so well. Bayer Cropscience, Bayer India and BASF India recorded a decline of 21.41 per cent in topline, as well as a steep decline of 104.25 per cent in their bottomline.

The overall performance of the joint ventures is reflected in the rise of the `IGCC 15' index — a benchmark developed by the chamber.

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