CHAPTER IV

ECONOMIC PROFILE OF SELECTED COMPANIES AND

INDUSTRIES

The present chapter gives the profile of various companies, industries,

and Bombay Stock Exchange (BSE) Sensex which are adopted for the

analysis. The chapter tries to give an account of the basic fundamentals of the

selected companies, such as net worth, total sales, profit after tax, total foreign

exchange earnings and total foreign exchange spendings. This also will

present the trend and descriptive statistics of various selected indicators for the

analysis. The selected indicators and their per cent contributions are presented

in current prices. This is because of the fact that exchange rate and stock

market prices adopted for the analysis also are in current prices.

For the present study all companies are selected from the BSE 200

index based on their data availability from 1992 onwards and the foreign

exchange transactions. The total foreign exchange transactions of all the

selected companies are more than 20 per cent of the total sales. Based on the

above criteria all together 53 such firms are available from BSE 200 index.

These companies are from different industry backgrounds. For the sake of a

comparative study 7 BSE industry indices such as Health Care, Auto, Metal,

Capital Goods. Oil and Gas, FMCG and Information Technology are also

adopted. The fundamentals of all the selected companies and industries are

explained further.

For simplicity and clarity, the profile of selected companies and

industries is presented in the following order,

(i) Net worth,

(ii) Net profit,

(iii) Total sales,

(iv) Foreign exchange earnings, and

(v) Foreign exchange spendings.

(i) Net Worth

Net worth shows the sum total of a company's share capital and

reserves or the difference between total assets and external liabilities. Panel A

of Table 4.1 presents the net worth of the selected companies. It also gives the

per cent contribution of the selected companies for the years from 1992 to

2004. In the year 1992, sum of the net worth of all the selected companies was

Rs 7800.7 Crores. Out of this, the per cent contribution was highest for

Reliance Industries Ltd., and it was 24.03 per cent. In the same year average of

the net worth of all the concerned companies was Rs 146.73 Crores. In 1992,

companies such as Bombay Dyeing and Mfg. Co. Ltd, Century Textiles and

Industries Ltd, Escorts Ltd, Essar Steel Ltd, Great Eastern Shipping Co. Ltd,

Hindalco Industries Ltd, Housing Development Finance Corpn. Ltd, Indian

Rayon and Industries Ltd, Kochi Refineries Ltd, Nestle India Ltd, Raymond

Ltd, Tata Iron and Steel Co. Ltd, and Tata Tea had net worth above the

avmge level. By the year 2004, sum of the net worth of all the selected

companies has gone up to Rs 79773.19 Crores. In this year also Reliance

Industries Ltd. is maintaining the lead having 39.89 per cent of the total net

worth of the selected companies. Through out the years from 1992 to 2004,

the average net worth of the selected 53 companies also increased steadily. In

2004, average net worth is found to be Rs 1500.34 Crores. In this year

companies like Dr. Reddy's Laboratories Ltd, Great Eastern Shipping

Company Ltd, Hindalco Industries Ltd, Housing Development Finance Corpn.

Ltd, Kochi Refineries Ltd, Moser Baer India Ltd, Ranbaxy Laboratories Ltd,

Tata Iron and Steel Co. Ltd, and Wipro Ltd have net worth more than the

average level. The table further reveals that among the selected companies, the

per cent contribution of companies such as Cipla Ltd, Dr. Reddy's

Laboratories Ltd. Hindalco Industries Ltd, Housing Development F i c e

Corpn. Ltd, Ranbaxy Laboratories Ltd, Reliance Industries Ltd, and Wipro Ltd

are showing an increasing trend through out the years from 1992 to 2004. The

important matter to be noted here is the entry of new companies to the higher

net worth category. These new companies are mainly from the

Pharmaceutical, and Information Technology Industries.

The linear growth rate of net worth of all the selected companies are

also p r c ~ t d in Table 4.1. It shows the per cent growth rate of' net worth Per

year over the study period. The table reveals that the growth rate of net worth

of all the selected companies except Essar Steel Ltd. are positive.

Panel B of Table 4.1 shows net worth of all the 7 industries considered

for the analysis. The per cent contributions of net worth of each of the

industries to the total net worth are also presented in the table. The table

reveals that the sum of the net worth of all the 7 industries has increased from

Rs 34018.74 Crores in 1992 to Rs 228928.08 Crores in 2004. In 1992, out of

the total net worth the per cent contribution of Oil and Gas industry is the

highest (49.14), followed by metal (28.23). In the same year the average net

worth of all the industries was Rs 4859.82 Crores. The industries such as Oil

and Gas, Metal have net worth more than the average. By the year 2004, the

per cent contribution of net worth of Oil Gas industry to the total net worth has

reached to 53.06 per cent. In this year the average net worth of all the

industries also increased to Rs 32704.01 Crores. In the same year only Oil and

Gas industry is having the net worth more than the average level. All the

selected industries are showing a positive linear growth rate in terms of net

worth during the study perion.

Panel C reveals the net worth of market index (BSE Sensex). The total

net worth of the Sensex has gone up from Rs 28194.03 Crores in 1992 to Rs

217874.94 Crores in 2004. The linear growth rate of net worth of Sensex at

current prices is found to be 99.0 per cent per year over the study period from

1992 to 2004.

(ii) Net Profit

The net profit is nothing but the profit of companies after the tax. It is

the profit after interest and taxes and any extraordinary charges or receipts

have been included. It will help us to know the performance of the companies.

The net profit of the companies and their per cent contribution for the years

from 1992 to 2004 are presented in Panel A of Table 4.2. In the year 1992,

sum of the net profit of all the selected companies was Rs 1537.48 Crores. Out

of this, the per cent contribution was the highest for Tata Iron and Steel Co.

Ltd., and it was 15.76 per cent. In the same year average of the net profit of all

the concerned companies was Rs 30.14 Crores. In 1992, companies such as

Bombay dyeing and Mfg. Co. Ltd, Castrol India Ltd, Century Textiles

Industries Ltd, Essar Steel Ltd, Great Eastern Shippings Co. Ltd, Hindalco

Industries Ltd, Housing Development Finance Corpn. Ltd, Indian Rayon and

Industires Ltd, Kochi Refineries Ltd, Raymond Ltd, Reliance lndustries Ltd,

Sesa Goa Ltd, Tata Iron and Steel Ltd, and Tata Tea Ltd. had net profit above

the average level of the selected companies. By the year 2004, sum of the net

profit of all the selected companies was Rs 15821.91 Crores. In this year

Reliance lndustries Ltd. has the highest per cent contribution, and it is 32.47

per cent of the total net profit of all the selected companies. In 2004, average

net protit is found to be Rs 304.25 Crores. In this year companies like Great

Eastern Shipping Co. Ltd, Hindalco Industries Ltd, Housing Development

Finance Corpn. Ltd, Kochi Refineries Ltd, Moser Baer India Ltd, Ranbaxy

Laboratories Ltd, Tata Iron and Steel Co. Ltd and Wipro Ltd, are having net

profit more than the average level of Rs 304.26. In 2004, both the

Pharmaceutical and the Information Technology emerged as the highly profit

making industries.

The linear growth rate of net profit of all the selected companies is also

presented in Table 4.2. The table reveals that the growth rate of net profit of

companies such as Bombay Dyeing and Mfg. Co. Ltd., Century Textiles and

Inds. Ltd., Essar Steel Ltd., Sesa Goa Ltd., and Titan Industries Ltd. are

negative. This is because of the highly uncertain nature of profit of these

companies over the years from 1992 to 2004.

Panel B of Table 4.2 shows net profit of all the 7 industries considered

for the study. The per cent contributions of net profit of each of the industries

to the total net profit are also presented in the table. The table reveals that the

sum of the net profit of all the 7 industries has increased from Rs 4094.82

Crores in 1992 to Rs 53368.35 Crores in 2004. In 1992, out of the total net

profit the per cent contribution of Oil and Gas industry is the highest (42.91),

followed by metal (23.34). In the same year the average net profit of all the

industries was Rs 584.97 Crores. The industries such as Oil and Gas, Metal

have net profit more than the average. By the year 2004, the per cent

contribution of net profit of Oil and Gas industry to the total net profit has

reached to 51.88 per cent. In this year the average net profit of all the

industries also increased to Rs 7624.05 Crores. In the same year only Oil and

Gas industry does have the net profit more than the average level. Besides, all

the selected industries are showing a positive linear growth rate of net profit

during the study period.

Panel C reveals the net profit of market index (BSE Sensex). The total

net profit of the Sensex has gone up from Rs 3055.70 Crores in 1992 to

Rs 41029.46 Crores in 2004. The linear growth rate of net profit of Sensex at

current prices is found to be 98.3 per cent per year during the study period.

(iii) Total Sales

Panel A of Table 4.3 shows the total sales or the turn over of the

selected companies and their per cent contribution for the years from 1992 to

2004. This helps us to understand the size of the f m . In the year 1992, sum

of the sales of all the selected companies was Rs 20943.85 Crores. Out of this,

the per cent contribution was highest for Tata Iron and Steel Co. Ltd., and it

was 14.73 per cent. In the same year average of the total sales of all the

concerned companies was Rs 402.56 Crores. In 1992, companies with total

sales above the average level were Bombay Dyeing and Mfg. Co. Ltd, Century

Textiles and Industries Ltd, Crompton Greaves Ltd, Escorts Ltd, Essar Steel

Ltd, Hindalco Industries Ltd, Indian Rayon and Industries Ltd, Kochin

Refineries Ltd, Nestle Inda Ltd, Raymond Ltd, Reliance Industries Ltd, and

Siemens Ltd. By the year 2004, sum of the sales of all the selected companies

has gone up to Rs 168524.83 Crores. In this year Reliance Industries Ltd. is

maintaining the lead having 44.17 per cent of the total sales of all the selected

companies. In 2004, average sales of all the selected companies are found to

be Rs 3240.86 Crores. In this year companies like Essar Steel Ltd, Hindalco

Industries Ltd, Kochi Refineries Ltd, Tata Iron and Steel Co. Ltd, and Wipro

Ltd have a total hun over more than the average level.

Panel B of Table 4.3 shows total sales of all the 7 industries considered

for the analysis. The per cent contributions of total sales of each of the

industries to the sum of the sales of all the concerned industries are also

presented in the table. The table reveals that the sum of the sales of all the 7

industries has increased from Rs 106061.81 Crores in 1992 to Rs 665401.20

Crores in 2004. In 1992, out of the aggregate sales the per cent contribution of

Oil and Gas industry is the highest (51.37), followed by metal (16.03). In the

same year the average sales of all the industries was Rs 15 15 1.69 Crores. The

industries such as Oil and Gas, Metal have sales more than the average. By the

year 2004, the per cent contribution of sales of Oil and Gas industry to the

aggregate sales has reached to 61.34 per cent.

Panel C reveals the total sales of market index (BSE Sensex). The total

sales of the Sensex have gone up from Rs 51 840.11 Crores in 1992 to Rs

32473 1.97 Crores in 2004. The linear growth rate of sales of Sensex at current

prices is found to be 99.70 per cent per year during the study period.

(iv) Foreign Exchange Earnings

Panel A of Table 4.4 shows the total foreign exchange earnings of all

the selected companies and their per cent contribution for the years from 1992

to 2004. In the year 1992, sum of the foreign exchange eamings of all the

selected companies was Rs 2269.76 Crores. Out of this, the per cent

contribution was highest for Tata Iron and Steel Co. Ltd., and it was 20.04 per

cent. In the same year, the average of the total foreign exchange earnings of all

the concerned companies was Rs 48.36 Crores. In 1992, the companies with

total foreign exchange earnings above the average level were ABB Ltd,

Bombay Dyeing and Mfg. Co. Ltd, Century Textiles and Indus Ltd, EIH Ltd,

Great Eastern Shipping Co. Ltd, Indian Rayon and Indus Ltd, Nestle India Ltd,

Ranbaxy Laboratories Ltd, Reliance Industries Ltd, Sesa Goa Ltd, Siemens

Ltd, and Tata Tea Ltd. By the year 2004, sum of the foreign exchange

earnings of all the selected companies was Rs 35802.61 Crores. In this year

Reliance Industries Ltd. is maintaining the lead having 33.02 per cent of the

total foreign exchange earnings of all the selected companies. In 2004, average

foreign exchange earnings of all the selected companies are found to be Rs

702.01 Crores. The companies like Cipla Ltd, Dr. Reddy's Laboratories Ltd,

Essar Steel Ltd, Great Eastern Shipping Co. Ltd, Hindalco Industries Ltd,

Jindal Iron and Steel Co. Ltd, Jindal Saw Ltd, Moser Baer India Ltd, Ranbaxy

Laboratories Ltd, Tata Iron and Steel Company Ltd, Tata Tea Ltd and Wipm

Ltd have more foreign exchange earnings, and it is above the average level.

The &ta of Kochi Refineries Ltd are not available for most of the years. It is

mainly because of the fact that Kochi Refineries Ltd is an import oriented

company, and its foreign exchange spendings are negligible.

Panel B of Table 4.3 shows total foreign exchange earnings of all the 7

industries considered for the analysis. The per cent contribution of total

foreign exchange eamings of each of the industries to the sum of the foreign

exchange earnings of all the concerned industries are also presented in the

table. The table reveals that the sum of the foreign exchange earnings of all the

7 industries has increased from Rs 5643.90 Crores in 1992 to Rs 68701.47

Crores in 2004. In 1992, out of the aggregate foreign exchange earnings the

per cent contribution of Oil and Gas industry is the highest (30.99), followed

by metal (19.34). In the same year the average foreign exchange earnings of

all the industries was Rs 806.27 Crores. The industries such as Oil and Gas,

Metal have foreign exchange earnings more than the average. By the year

2004, the per cent contribution of foreign exchange earnings of Oil and Gas

industry to the aggregate foreign exchange earnings has declined to 29.3 1 per

cent. In this year average total foreign exchange earnings of all the industries

also increased to Rs 9814.50 Crores. In the same year Oil and Gas,

Information Technology, and Metal industries are having the foreign exchange

earnings more than the average level.

Panel C reveals the total foreign exchange earnings of market index

(BSE Sensex). The total foreign exchange earnings of Sensex has gone up

from Rs 2174.33 Crores in 1992 to Rs 37468.04 Crores in 2004. The linear

growth rate of foreign exchange earnings of Sensex at current prices is found

to be 99.10 per cent per year over the study period from 1992 to 2004.

(v) Foreign Exchange Spendings

Panel A of Table 4.5 shows the total foreign exchange spendings of all

the selected companies and their per cent contribution for the years from 1992

to 2004. In the year 1992, sum of the foreign exchange spendings of all the

selected companies was Rs 2862.99 Crores. Out of this, the per cent

contribution was highest for Kochi Refineries Ltd., and it was 26.41 per cent.

In the same year average of the total foreign exchange spendings of all the

concerned companies was Rs 54.02 Crores. In 1992, companies with total

foreign exchange spendings above the average level were Bombay Dyeing and

Mfg. Co. Ltd, Cummins India Ltd, Essar Steel Ltd, Great Eastern Shipping

Co. Ltd, Ranbaxy Laboratories Ltd, Reliance Industries Ltd, and Tata Iron and

Steel Company Ltd. By the year 2004, sum of the foreign exchange spendings

of all the selected companies has gone up to Rs 54127.14 Crores. In this year

Reliance Industries Ltd. is maintaining the lead having 65.38 per cent of the

total foreign exchange spendings of all the selected companies. In 2004,

average foreign exchange spendings of all the selected companies is found to

be Rs 102 1.26 Crores. The companies having the foreign exchange spendings

of more than the average level are Great Eastern Shipping Co. Ltd, Hindalco

Industries Ltd, Moser Baer India Ltd, Ranbaxy Laboratories Ltd, and Wipro

Ltd.

Panel B of Table 4.3 shows total foreign exchange spendings of all the

7 industries considered for the analysis. The per cent contribution of total

foreign exchange spendings of each of the industries to the sum of the foreign

exchange spendings of all the industries concerned is also presented in the

table. The table reveals that the sum of the foreign exchange spendings of all

the 7 industries has increased from Rs 16843.92 Crores in 1992 to Rs

149362.30 Crores in 2004. In 1992, out of the aggregate foreign exchange

spendings the per cent contribution of Oil and Gas industry is the highest

(51.32), followed by metal (13.65). In the same year the average foreign

exchange spendings of all the industries was Rs 2406.27 Crores. The

industries such as Oil and Gas, Metal have foreign exchange spendings more

than the average. By the year 2004, the per cent contribution of foreign

exchange spendings of Oil and Gas industry to the aggregate foreign exchange

spendings were 52.1 1 per cent. In this year average total foreign exchange

spendings of all the industries also increased to Rs 21337.47 Crores. During

the same year, only Oil and Gas industry is having the foreign exchange

spendings more than the average level.

Panel C reveals the total foreign exchange spendings of market index

(BSE Sensex). The total foreign exchange spendings of Sensex has gone up

from Rs 4350.37 Crores in 1992 to Rs 60981.43 Crores in 2004. The linear

growth rate of foreign exchange spendings of Sensex at current prices is found

to be 96.40 per cent per year over the study period.

An overview of the above fundamentals reveals the fast growth of

Reliance Industries Ltd. during the study period. In case of all the economic

fundamentals, Reliance Industries Ltd. is dominating. Not only that in case of

industries, Oil & Gas industry is also dominating. The possible justification

could be the increased demand for petroleum products over the years. In

addition to this, the demand for fuel is more or less inelastic. in case of linear

growth rate, trend is very clear towards the growth of Health Care and

Information Technology based companies. Abrupt boom in these industries

caused by increased health consciousness of the people and process

outsourcing especially in Information Technology field in 1990s can be

considered as the possible explanation for these.

In addition to the above fundamentals, the foreign exchange

transactions as per cent of total sales are also examined. The per cent-wise

foreign exchange earnings, foreign exchange spendings, total foreign

exchange transactions, and net foreign exchange earnings of companies are

presented in Panel A of table 4.6. Foreign exchange earnings as per cent of

sales are highest for Himatsingka Seide Ltd and it is 96.39 per cent of the total

sales. Firms like Aban Loyd Chiles Offshore Ltd., E I H Ltd., Great Eastern

Shipping Co. Ltd., Moser Baer India Ltd., Ranbaxy Laboratories Ltd., Sesa

Goa Ltd., Tata Infotech Ltd., Tata Tea Ltd. and Wipro Ltd. are having foreign

exchange earnings more than 50 per cent of the total sales. In case of total

foreign exchange spendings it is highest for Moser Baer India Ltd. and it is

95.23 per cent of the total sales. For the Great Eastern Shipping Co. Ltd.

foreign exchange spendings is 63.81 per cent of the total sales. As far as the

total foreign exchange transactions are concerned companies such as Great

Eastern Shipping Co. Ltd., Himatsingka Seide Ltd. and Moser Baer India Ltd.

are having more than 100 per cent of total sales. In case of net foreign

exchange earnings Tata Tea Ltd. is having the highest and it is 80.20 per cent

of the total sales.

Panel B shows the foreign exchange transactions of industries. Foreign

exchange earnings as per cent of sales are highest for Information Technology

and it is 66.60 per cent of the total sales. Next Health Care industry is having

the highest per cent foreign exchange earnings with 28.94 per cent of total

sales. In case of total foreign exchange spendings also it is the Information

Technology which is in the lead having 37.29 per cent of the total sales. Here

Oil & Gas industry is in the second position having 25.01 per cent of total

sales. As far as the total foreign exchange transactions are concemed, it is

lnformation Technology in the first position with 103.89 per cent of total sales

followed by Health Care industry with 47.51 per cent. In the case of net

foreign exchange earnings to total sales it is again lnformation Technology

and Health Care industry are having the most with 29.31 and 10.38 per cent

respectively.

Ratios of foreign exchange transactions of BSE Sensex to sales are

presented in Panel C of Table 4.6. From the table it is clear that forex earnings

to sales are 8.29 while foreign exchange spendings to sales is 14.39.

Therefore, total foreign exchange transactions to sales and net foreign

exchange mans to sales are seen as 22.69 per cent and -6.10 per cent

t~pectively.

407 gives the linear growth rate of all the variables such as he

foreign achange rate, company share values, industry inQces ad BSE

Sensex also. The linear growth rate shows per year per cent growth rate over

the study period 1992-2004. Panel A of the table reveals that over the study

period rupee dollar exchange rate grew by 93.9 percent per year. This reveals

the depreciation of Indian rupee over the study period. In the case of

companies, linear growth rate (Panel B) is found significant at one prcent

level for the selected companies except Exide Industries Ltd. Out of 53, per

year percent growth rate is positive for only 19 companies, and rest of the

company's rate of growth is negative. The highest growth rate is that of Moser

Baer India Ltd., and it is found to be 82.5 percent per year. From the table it is

evident that the linear growth rate is highest for Information Technology and

Pharmaceutical companies. Panel C shows the growth rate of industry indices,

and it is found significant for all the 7 industry indices. The growth rate per

year is found to be the highest for Information Technology and Health Care

indices, and it is 93.5 and 95.0 per cent respectively. The linear growth rate of

BSE Sensex presented in Panel D is also found to be highly significant. The

Sensex is growing at a rate of 3 1.3 percent per year.

Summary Statistics

The summary statistics of rupee-dollar exchange rates, share value of

companies, industry indices, and the BSE Sensex are presented in Table 4.8.

The results are presented under different panels. The summary statistics will

help us to have a preliminary investigation of the nature of the exchange rate,

the stock prices, the industry indices, and the BSE Sensex. From the table it is

evident that the standard deviation is very high in case of most of the firms

and industries. It shows the presence of volatility in the samples. The volatility

of equity prices is very high for the companies like Wipro Ltd, Housing

Development Finance Corpn. Ltd, Novartis India Ltd, and Alembic Ltd. It is

persistent in case of rupee dollar exchange rate also, even though it is not very

high. It is also found that most of the firms and industries are having large

excess kurtosis. The BSE Sensex also shows the presence of very high

volatility. Table shows the presence high standard deviation, skewness, and

kurtosis for the Sensex also. The excess skewness and kurtosis indicate that

they are not normally distributed. Thus the summary statistics shows the

persistence of high fluctuation of various indicators in the Indian Stock

Market.

Concluding Remarks

The present chapter has examined the per cent contribution and trend of

economic fundamentals such as net worth, net profit, total sales, total foreign

exchange earnings, and total foreign exchange spendings of all the selected

companies, industries, and BSE Sensex. The companies such as ~ ~ l i ~ ~ ~ ~

Industries Ltd.9 Tats Iron and Steel Co. Ltd., Kochi Refineries Ltd., and

Aventis Pharma Ltd. are found to be the dominating firms. This is because of

the highly influencing role of fuel and iron and steel industries in the

economy. Following the same track Oil & Gas industry is the dominating one

among all the industries adopted for the analysis.

As far as the linear growth rates of economic fundamentals are

concerned, it is the firms such as Cipla Ltd, and Wyeth Ltd. from Health Care

industry are dominating. As expected at the industry level, Health Care

industry is having the highest growth rate.

The linear growth of exchange rate, share values of all the selected

companies, industry indices, and BSE Sensex were also examined. High

growth rate of exchange rate shows the depreciation of Indian Rupee over the

study period. The negative growth rate of share prices of many of the

companies revealed highly inconsistent growth over the years. In case of

industries, growth rate of Health Care is the highest. In addition to that.

lnformation Technology industry is also maintaining a steady rate of growth.

The BSE Sensex is found to he growing moderately over the study period.

Thus, it can be concluded that the performance of basic industries such

as Oil & Gas and Iron & Steel, and emerging industries such as Health Care

and lnformation Technology show the growth of Indian Economy under the

liberalisation era.

31W3 '2SeCpwp oU!{UO SS3MOad :'JJ"OS -Alan!~=adsal srg I pue 'OLJ~-I "JLS'Z axe s=!ls*reIr- I 20, sanlen l e ~ ! p o ~ u a ~ d a d 01 pue '1u.a lad 5 ' l u a ~ ,ad 1 a q 1 .9

pue ' p n q l u m lad 01 l e IUP~~!U%!S *.* -5 'IaAal lu2s lad 5 1s 1ue3g$u%!s ,, -*

'12.%11 I U ~ J l a d I le I M J ~ ! U % ! L , -E rJ!s!lels- I moqs y g ~ >=pun saaoqluued u! sanle,-, 'Z

'uo!lnq!Jluo3 = % = l u a ~ ~ o d n0qE slea.6 aqq, mpun sasaq~ua~ed ul s s n l e ~ - 1 :ZION

*(&TI

831

I W 3 896.0 19 5zE+I 6s bZ911 orwm r b i t s ~ 65 ezss ~6 rars 8s r n ~ b svnrnt r~ zrcr 1 s ~ v c z z s to ra t n r z ~ vc r r s

.(9S-OZ) RW0

131

r a m s o! raraa~ 3 s ~ :J 1ro.d

W*LHLIZ

l6SI) tl mLSl

WOZ

nori9enl

V0.Z

(C09) 65 60LII

CWI

9~ I U ~ ~ Y I

nv3%

1V3h

COO2

(Ll i ) LCBIOTI

2002 AIILS:I~YI

OI.CY~SLI

2

(099) RL6ZZOI

IMZ

onorr,sb < I 5nt1z1

IWZ

ICHS) 18 fZi8

0002

OC~SITOI LC r r r t a 01 9mrL

ICZI) lLY959

6661

rL z s m

W Z

r o c c L n s r ts rvs rorblnz

6661 OM1 L M I

( t i t ) V6LllZ

Wl

9661

IZC .I 8, OiC*

Leal

S66I

I l h r l ' liHCl C I UltC : h t L i L i

-1

IIS Vl iLhlCZ

,661 9661 Msl

CMI

(L8 0 I L L 6 1

C66l

2661

(69 0 S I 0 i l

2-1

3 3 ~ 6

Table 4.2 contnmurd P a u l B: Industries in croms

Panel C: BSE Sc..ex _ - - .. _ in nor-

LCR

Oqu3 (1742)

YEAR

Note: 1. Valucs ~n parenthear under the years show percentage contribution. 2. Values in parmllleses under LGR show t -statistics. 3. . significant at I per cent Icvel, 4. ** significant at 5 per cent Icvcl, 5. "* rlgn~ficant at 10 per cent level. and 6. The I per ccnl, 5 per cent, arod 10 per c a t critical values fort -stat~stics are 2.576, 1.960, and 1.645 respectively. Source: PROWESS online database. CMIE.

305570 1 361796 1 5-934 1 882044 1 10811 W / 1229616 1 1476528 1 I5065VS 1 1964246 1 21971 44 1 26Y9523 1 3561256 1 4102946

I992 I998 1993 ZWO I P P ~ I994 1995 1 1999 2001 2003 2002 2004

1.u

Ingcnoll-Rand 1I"dl.) Lld

HinuWrngtr Sc* I ld

H'ndskolndur- I Id

H"url"l Dcrslopmnl Fmrmc(..,rpn ~ . ~ d

26.15 10 11)

976.94 1395)

47267 (191)

1578 (008)

85662 I 4 W l

371 34 1177)

37117 60 101

1131 8 13UOI

MI 74 1116)

4 10.82)

5119 lu 11)

131632 1245)

l2MI 11 $2401

31 17 lu lo)

9238 13111

hOIMI 1203)

I 8 I 6 l o l o t

1424 17 1306l

?%US 98946 12111 12131

606.W I2461

201 06 1081)

5985 (0 l u t

1671 91 12721

1U525 1235)

908.46 (305)

212.97 (072)

84% 10 13)

201453 (3.121

176287 12731

11395 l o 15)

2309.37 (3051

2011 81 (265)

107807 121161

220 1 1058)

12864 (0 I41

2585.79 1282)

23748 1259)

12282 (0 101

2W2.07 (2171

269225 t2 IP I

1402.42 1302)

28229 (061)

13567 (0.0801

681986 (4.05)

3080.33 11.831

125.96 (0.w)

549907 (381)

2968.12 12061

0.970 (13.18)-

0957 (1099).

09% 119451'

1641 4 130Cl

33401 (062)

11114 54 (295)

42679 (069)

1466.62 (227)

38594 10.601

I187 14 (1.57)

42889 (057)

I ISV163 (110)

491.5 10 34)

IS2S.VS 1166)

3W39 (038)

I550 14 (1.26)

441941 (0341

171761 (102)

51082 (0 301

0.791 (4.28)-

0939 (906)*

I ! I ! ! ! ! ! ! ! ! !

Table 4.6: Foreign Exchange Transactlons as percentage of Total Sales

Spendings to E

Sales a LnIIeB

~f f tbore .~ td . A B B Ltd Ltd. Alembic Ltd. Alh Laval (India) n LA

ryelog dr M~:CO. ~ t d . I 15.59 21.37 36.97 -5.78

Castrol India Lrd. I 0.25 23.67 23.92 1 -23.42

/ Abrn LOY ' "' " I

Total Transactions

to Sales

LIIU.

Arvind Mills Ltd. Aveniir Pbarmr

Net Forex Earnings to

Sales

69.70

13.84 17.86

24,73

16.94 21.73 38.67 -4.79

40.24

Century Textiles , & lads. Ltd. Cipla Ltd. Crompton

29.92

20.59 10.51

23.35

;?ins India 1 23,05

15.71

16.92

28.18

12.86

Great Eastern Shipping Co. Ltd. Himttingka Selde Ltd. Hlndalco Industrin Ltd. HDFC Ltd.

99.62

34.43 28.37

48.08

23.69

lndlan Rayon & Indr Ltd. Ingersoll-Rand

jlodla) Lld. Jlndal lron & Sln l Co. Ltd.

39.77

-6.74 7.35

1.38

55.95

8.13

13.78

9.68

88.68

96.39

13.82

7.99

24.53

46.73

18.51

22.46

34.01

25.05

41.96

22.54

-0.64

63.81

47.86

18.80

12.22

8.79

14.40

3.17

16.53

20.09

15.35

152.49

144.25

32.62

20.21

24.87

48.53

-4.98

-4.24

35.04

42.54

49.36

1.98

2.37

18.67

Table 4.6 continued

Companies Forex

Earnings to Forex

Spendings to Total

Transactions Net Forex Earnings

Table 4.6 continued Panel B: Industries

Panel C: BSE Sensex

Forex Earnings to Sales

8.29 Source PROWESS onl~ne dabbase. CMlE

Forex Spendings to Sales

14.39

Total Transactions to

Sales 22.69

Net Forex Earnings to

Sales -6.10

Table 4.7: Linear Growth Rate (LGR) of Exchange Rate, Share Prices of Selected Companies, Industry Indices, and Sensex

Panel A: Exchange Rate Indian Rupee (MR)RIS Dollar (USD) Exchange

Rate

Panel B: Companies

0 939 (1 50 98)'

Aban Loyd Chiles Offahore Ltd.

A B B Ltd Ltd.

Alembic Ltd.

Alfa Lavrl (India) Ltd.

Awind MU¶ Ltd.

Aventls Phrrmr Ltd.

Bharat Forge Ltd.

Bombay Dyeing & Mfg. Ca. Ltd.

Castroi India Ltd.

Century TextUes & Inds. Ltd.

-. Cipla Ltd.

Crompton Greaves Ltd.

0 079 (4 26)'

-0 237 (13 49)'

-0 796 (70 39)'

0 057 (3 10)'

-0 694 (53 18)'

0 319 (18 21)'

0 307 (1 7 84)*

-0 707 (55 30)'

-0 896 (1 11 91)'

-0 824 (80 56). - -0 478

(30 11)'

-0 625

Cummint India Ltd.

Dr. Rcddy'S Laboratorin Ltd.

E I B l.td.

Ercorts Ltd.

E ~ s a r S tn l Ltd.

Essel Propack Ltd.

(44 04)'

4 706 (54 52)'

0 63 (44 91)'

-0 35 (20 66).

-0 527 (34 32)'

-0 742 (61 40)'

0 409 (24 74)'

Table 4.7 continued

-0.916

-0.167

-0.397 (22.17)'

(47.81)' Jindai Iron & Steel Co. Ltd. -0.407

Hindrico Inductrin Ltd.

Rousing Development Finance Corpn. Ltd.

Indian Rayon & Indr Ltd.

lagersoil-Rand (India) Ltd.

Jindal Saw Ltd. -0.41

Jubilant Orgrnorys Ltd. -0.138

Kochi Refineries Ltd. -0.637

0.168

-0.72 (57.42)'

-0.66 (48.61)'

-0.654

(45.82)' Max India Ltd.

Merck Ltd.

Mon~anto Indir Ltd.

Mwer Baer India Ltd.

Nestle Indir Ltd.

Nicbolas Piramml India Ltd.

-0.59

0.71 (55.75)'

0.584 (38.28)'

0.825 (79.95)'

0.757 (64.07)'

0.399

Table 4.7 continued Raymond Ltd.

(27 50)'

Siemens Ltd.

-0 445

Reliance Indurtries Ltd.

Rolta India Ltd.

&?la Ltd.

0 39 (23 48)*

0 562 (37 60)'

-0 556

Titan lndurtrin Ltd. -0 355

21 03 * Wipro Ltd.

3162 * Wyeth Laboratories I.td. [Mergedl -0 274

, , c *,,*

(39 76)' Thomas Cwk (India) Ltd. -0 759

Table 4 J continued Panel C: Industry

2. * significant at I per cent level, and 3. The critical value fort -statisticr at I per cent level is 2.576.

AUTO

CAPITAL GOODS

FMCC

HEALTH CARE

IT

METAL

OIL & GAS

Panel D: Sensex

0.604 (42.03)*

0.542 (35.75)'

0.852 (90.49)'

0.95 (169.41)'

0.935 (146.52)*

0.121 (6.77)'

0.85 (89.61)'

BSE SENSEX 0.313 (14.08)'

Notes: I . Values in parentheses show t .statistics.

Table 4.8: Summary Statistics of Share Prices of Selected Companies, lndustry Indices and Sensex

Panel A: Exchange Rate Mean Median Standard 1 Deviation 1 I Kurtosls 39.85 1 42.22 1 6.75 -2.88 -1.40

Table 4.8 continued

Panel C: Industries Industry Name / Mean / Medirn I ~~~~~~ I Skewness 1 Kurtosis /

METAL 1 31050 1 253.56 1 164.57 1 1.46 1 4.74 OIL & GAS / 100.95 1 86.23 1 75.00 1 1.42 1 4.72

AUTO CAPITAL GOODS FMCG HEALTHCARE , IT

277.74 197.36 578.19 356.18 509.07

Panel D: BSE Sensex

240.1 1 176.62 662.43 201.28 152.43

Mean

5028.851 1 3557.190 1 2282.43 1 55.13 I 7 1.45

Skewness

YS.U"VU

165.15 96.92 274.31 169.72 619.24

Kurtosia Median Standard Deviation

1.77 1.82

-0.127 1.77 1.40

5.77 6.25 1.60 3.88 5.08