On the Q2 trail: 7 BSE 500 companies more than double their sales

Godrej Properties, which primarily builds luxury homes, has seen a boom in pre-bookings and thus sales in the last few years. The outlook for luxury homes is usually not affected by a rise in interest rates, thus putting the company in a better position compared to peers that build comparatively affordable houses. In the second quarter, its sales more than doubled with operating profit zooming by half. However, the company reported a drop in profits for the quarter. This, however, has had no impact on investors who have kept buying the stock as reflected in strong near-term returns. The company reported its highest-ever quarterly sales of Rs 5,034 crore, a growth of 109 percent from last year.

PVR Inox, after the merger of erstwhile PVR and Inox Leisure, is arguably the king of show business in India. After a disastrous Covid-19 period and a painful year following that in which a lack of quality films and the emergence of OTT disrupted the business, the current year so far has been a lot better. Some good films have boosted its business along with the rapid addition of screens across India. This is reflected in nearly tripling of sales and quadrupling of operating profit during Q2. However, the fear of OTT taking away its business is keeping investors nervous. On account of stellar launches, its revenue rose 195 percent in the second quarter. 

Welspun Corp is among the largest makers of line pipes in India. Its products are used in the transmission of oil, gas and water. The company has been getting large contracts from Indian as well as overseas clients. One of its associate companies recently received contracts worth Rs 1,000 from a Saudi oil company. This follows a Rs 4000 crore order from Aramco in May. Such orders give revenue visibility. No wonder its revenue and profit have seen tremendous improvement. Investors have also bought its shares at every opportunity, making it a multi-bagger in the last year. The company’s revenue from operations jumped 106 percent to Rs 4,059.5 crore against Rs 1,963.8 crore in the corresponding period of the preceding fiscal.

The pharma sector has seen divergent views in the last couple of years, however, most analysts and fund managers agree that those focussing on the domestic market and having niche products for exports will see strong growth. Natco Pharma seems to stand true to this prediction. The company has delivered more than 100 percent growth in sales, operating profit and net profits for the September quarter. In Q2, the revenue from operation for the company rose 138 percent to Rs 1,031.

Over a century-old Swan Energy is involved in the business of textiles, oil and gas, petrochemicals and property development. Even though textiles have seen sluggish growth in recent years, gains from the other three segments have more than made up for that. The midcap company saw nearly nine-fold growth in revenue while operating profit and net profit have also seen sharp jumps. Not surprisingly, the stock has also delivered strong returns in the last year. The company’s revenue accelerated 752 percent in the second quarter. 

Sterling and Wilson Renewable Energy is an end-to-end solar engineering, procurement and construction (EPC) solutions provider globally and is also engaged in the operation and maintenance (O&M) of solar power projects. Jointly promoted by Reliance Industries and Shapoorji Pallonji Group, the company has seen a sharp rise in revenues. However, its bottomline has continued to suffer, reflecting its inability to convert revenue into profits. Its revenue rose 143 percent to Rs 759 crore in the second quarter. 

Another company from the fast-emerging renewable energy industry, Borosil Renewables is engaged in manufacturing extra clear patterned glass and low iron solar glass for application in solar panels, flat plate collectors and greenhouses. In a China-dominated industry, this is one of the few India-based companies making these products. The rapid expansion of solar energy in India has led to its own growth in the last few years. The small-cap company has delivered strong sales growth along with decent profit growth in Q2. However, investors are not reading too much into it. Its revenue increased 137 percent to Rs 406 crore in the second quarter.