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India's worst performers

You have been reading about how things have been looking up for Corporate India. Everybody is talking about an industrial and economic recovery that is quietly taking place. In the latest quarter of this financial year (July to September), most companies have been reporting better performances.

But what do these quarterly results actually mean to you, the individual investor? The Rediff Money Channel goes beyond mere audited financial results to look at informative trends. By examining each criteria that is of value to shareholders -- earning per share, market capitalisation, net profit, highest sales, operating profit margins, etc -- the Money Channel presents data you can use.

In the third part of our series, we present India's Top 50 loss-making companies.

Before you start on this list, a prayer from us. Hope your shopping list does not have the following companies. If you do, our sympathies.

Here are the worst performers in the last quarter (July to September 1999). These are companies which are in the red. But, hold on, yet. They may turn around!

A fleeting look at the list reveals that corporates in the cyclical industries are the occupants of this list. The list is mainly characterised by industries like denim, steel, cement, and metals.

The steel industry, with losses higher than the total losses of all other industries in this series, heads the table. SAIL, Essar Steel and Lloyd Steel are among the top five in this infamous list of companies with highest losses in the quarter ended September 1999. However, their market capitalisation is twice as much as it was during the corresponding period. If you want to read between the lines, probably, the worst is over. The anti-dumping duty and increasing international prices have improved the prospects during the second half.

Among the once blue-chip companies to figure amongst the top 10 losers is Arvind Mills. It is facing a problem of declining international demand. Denim prices have been crashing, and there is a huge interest burden. Arvind, however, has kicked off a restructuring plan which includes asset disposal.

Floatglass India, a joint venture between Asahi Glass of Japan and the Tatas, and Whirlpool (Kelvinator of India taken over by Whirlpool of the USA) are the two large multinationals in the top 50 losers. Both of them have improved their performance though. Floatglass India suffers from low realisation in the domestic market and high interest cost. However, the prices have improved of late and as such performance does seem better. The collaborators have again infused preference capital to further reduce the interest burden. Whirlpool has been gaining market share and improving profitability.

Three of the major Modern Group companies -- Modern Denim, Modern Thread and Modern Terry Towels -- find a place in this list of highest losers.

Companies will be added to the list as the results keep coming in. For instance, the results of KG Denim, yet another player in the denim industry, has not yet come in.

INDIA'S WORST PERFORMERS

NAME	OINC	TINC	PBT	EQUITY	LATPRICE	MKTCAP
SAIL	0	3653.2	-737.5	4130	12	4956.48
ESSAR STEEL	2.1	527.2	-133.3	330.4	12.4	409.7
MRPL	19	739.5	-83.6	792.2	18.2	1386.35
LLOYDS STEEL INDUSTRIES.	1.9	167.5	-55	199.7	5.4	91.86
ARVIND MILLS LTD.	0.7	290.9	-55	100.6	27	245.46
HIND COPPER LTD	2.1	113.9	-41.7	305.2	55.3	1687.76
LLOYDS FINANCE LTD.	0	28.6	-14.2	41.9	7.7	23.88
SIV INDUSTRIES LTD.	1.7	45.2	-31.5	69.1	10.8	73.94
CENTURY TEXTILES & INDS.	14.8	511.6	-29.4	93	58.1	460.35
MODERN SYNTEX (INDIA) LTD	0.1	128	-26.2	113.5	4.3	49.94
RAYMOND SYNTHETICS LTD.	1.2	122.3	-24.2	124.4	7.4	84.59
CESC LTD.	19	476	-24	74.5	36.5	227.97
HIND MOTORS LTD.	2.9	330.2	-22.7	161.3	10.9	153.24
CROMPTON GREAVES LTD.	1.6	360.3	-22.6	52.2	54.3	261
INDO RAMA SYNTHETICS LTD.	1.4	383.9	-21.8	155.7	12.8	180.61
JAIN IRRIGATION SYSTEMS	0.5	43.3	-19.8	20.2	16.1	30.91
MAFATLAL FINANCE CO. LTD.	0.6	12.5	-18	31.6	4.7	12.64
MODERN DENIM LTD.	0	23.7	-17.9	37.5	3.3	13.13
HIND DEVELOPMENT CORPN.	1.2	102.5	-16.8	111.9	12.1	111.9
FERRO ALLOYS CORPN. LTD.	1.2	49.2	-15.2	20.5	5	10.87
IFB INDUSTRIES LTD.	4.5	43	-14.8	15.8	13.6	17.85
GARWARE POLYESTER LTD.	0.2	68.3	-14.3	22	11.3	22.66
MODERN THREADS(INDIA) LTD	0	55.1	-14.1	34.8	4.4	10.09
OUDH SUGAR MILLS LTD.	0.4	45.1	-13.2	10.4	19.1	18.72
RAIN CALCINING	0.1	35.3	-12.7	129.5	0	181.3
PONNI SUGARS & CHEMICALS	0.3	23	-10.6	16.3	5.3	8.64
NRC LTD.	0.9	71.1	-11.6	17.1	7.1	9.92
FLOATGLASS INDIA LTD	0	46.1	-11.4	78	12	85.8
STANDARD INDUSTRIES LTD.	7.1	69.9	-11.4	39.3	6	21.62
MYSORE CEMENTS LTD.	0.4	80.7	-11.2	55.2	17.5	88.87
LLOYDS METALS & ENGINEERS	1.4	34.7	-11	23	11	19.55
GUJ ALKALIES & CHEMICALS	6.4	185	-10.3	45.9	25.2	112.91
WHIRLPOOL OF INDIA LTD.	10.3	193.3	-10	126.9	52.5	644.65
DCL POLYESTERS LTD.	0.3	76.7	-9.9	64.7	5.7	38.82
SOUTHERN IRON	0	14.5	-9.9	75.5	5.5	41.53
MAHARASHTRA ELEKTROSMELT	0.4	40	-9.8	10.1	35	35.35
SESA GOA LTD.	3	16.5	-9.4	19.7	140.2	227.73
IDI LTD.	2.5	46.5	-9	22	9.1	17.6
GUJ SIDHE CEMENT LTD.	0.4	34	-8.9	131	6.7	90.39
ROYAL CUSHION VINYL PROD	0.1	12.9	-5.3	12.1	13.3	18.15
MODERN TERRY TOWELS LTD	0.1	24.4	-8.1	41.7	3.7	13.34
UPPER GANGES SUGAR & INDS	0.3	4.2	-8	7	0	21.63
HIND SPG. & WVG. MILLS	1.8	71.3	-7.9	14.8	8.2	11.4
CABLE CORPORATION	0.6	56.3	-7.5	18	18.7	32.4
SHREE PRECOATED STEEL LTD	0.1	9.9	-7.1	56	2.8	12.88
PRISM CEMENT	0	77.2	-6.9	257	15.5	385.5
NIRLON LTD.	1.7	43.8	-6.8	58.2	4.1	23.28
MTZ POLYESTERS LTD	0	14.4	-6.8	86.7	0	21.68
BIRLA VXL LTD.	0.2	68	-6.7	65.1	14.9	89.19
NELCO	0.6	18	-5.8	22.8	63	121.98
KESAR ENTERPRISES LTD.	0.4	28.9	-6	6.3	17.1	9.83

Note:

1. The EPS has been adjusted for differences in paid up value per share.
2. EPS are annualised.
3. OINC- Other Income
4. TINC- Total Income
5. PBT- Profit Before Tax
6. LATPRICE- Latest Price
7. MKTCAP- Market Capitalisation

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