Highest Three-Year Net Profit Growth: Top 10 Companies

Compounded annual growth rate (CAGR) is often used to describe growth over a period of time of some elements of a business such as sales, operating profit or net profit. Here, we have tried to look at companies that have posted maximum CAGR in the bottomline or net profit on a standalone basis over the last three years. To make it more relevant for investors we have used some basic filters like a) only considered those companies that have posted net profit of more than Rs 50 crore in FY12 and b) the net profit of last three years has moved up (FY12>FY11 and FY11>FY10). Below mentioned is a list of ten companies that have posted the highest three-year CAGR on the basis of net profit.

Amrit Banaspati Company 
Promoted by N K Bajaj and based out of Patiala in Punjab, Amrit Banaspati Company tops our list. Basically engaged in the business of edible oils, the name is quite prominent in the northern part of India. The company, however, changed tracks after the end of the last fiscal. It is presently engaged in treasury operations pertaining to cash consideration received from the sale/transfer of business and trading in commodities. The management has guided that at present they are exploring various new business opportunities in which the company may engage in future, other than edible oils. Over the last three fiscals the company has reported a stupendous growth rate of 330 per cent on a CAGR basis. The net profit of the company at the end of March 31, 2012 stands at Rs 147.24 crore, witnessing an upward move from Rs 7.98 crore in FY10. The YTD returns have been -32.26 per cent on the scrip.

Cholamandalam Investment & Finance Company
The company was incorporated in 1978 as the financial services arm of the Murugappa Group. Started as an equipment financing company, it has spread its arms and now offers vehicle finance, business finance, home equity loans, stock broking and distribution of financial products to its customers. The company operates from over 350 branches across India with assets under management of over Rs 10,000 crore. The subsidiaries of Cholamandalam include Cholamandalam Securities and Cholamandalam Distribution. The company has witnessed strong CAGR growth of 235 per cent in its net profit over the last three years ending FY12. It has secured the second spot on our list following the methodology mentioned above. The net profit of the company at the end of March 31, 2012 stands at Rs 172.54 crore, witnessing an upward movement from Rs 62.18 crore in FY11 and Rs 15.42 crore during FY10. The YTD returns have been 100.26 per cent on the scrip.

Oberoi Realty
Based out of Mumbai and promoted by Vikas Oberoi, this company has been able to create a niche for itself among its buyers in the metropolitan city of Mumbai. The group has experience of more than over three decades in this field. The company is basically engaged in real estate and hospitality businesses in India. The company till date has executed 36 projects covering more than 6 million square feet. The company has all the leading names like Lifestyle, PVR, Croma, Central, Subway, Hewlett Packard, Mc Donald, to name a few, as its customers. On the net profit front the company has witnessed strong CAGR growth of 224 per cent over the last three years ending FY12. The net profit of the company at the end of March 31, 2012 stands at Rs 254.93 crore, witnessing an upward movement from Rs 170.57 crore in FY11 and Rs 24.28 crore during FY10. The YTD returns have been 27.39 per cent on the scrip.

Bombay Burmah Trading Corporation
Promoted by the Wadias, the company has been in existence for the past 142 years. It is engaged in the plantation of tea and coffee, horticulture and also manufactures products that are needed for dental, orthopaedics and ophthalmology treatments. The coffee plantation covers 4,105 square kilometers located in the Coorg district of Karnataka. The tea plantations in the hills of South India cover 2,822 hectares. These plantations are located in prime areas, producing 8 million kg of tea annually. On the net profit front the company has witnessed strong CAGR growth of 216 per cent over the last three years ending FY12. The company has secured the fourth slot on the list. The net profit of the company at the end of March 31, 2012 stands at Rs 136.49 crore, witnessing an upward movement from Rs 76.54 crore in FY11 and Rs 13.66 crore during FY10. The YTD returns have been 60.44 per cent on the scrip.

GMR Infrastructure
Promoted by G M Rao, it is a diversified company with interest in infrastructure development, primarily in India. Apart from engagements in building airports, highways and urban infrastructure, the company has also marked its presence in the energy sector. The company also has international presence in countries like Turkey, Maldives, South Africa, Indonesia, Singapore and Nepal. In these countries it is either involved in developing airports or has been working in the energy sector. On the net profit front the company has witnessed strong CAGR growth of 199 per cent over the last three years ending FY12. The net profit of the company at the end of March 31, 2012 stands at Rs 120.3 crore, witnessing an upward movement from Rs 58.88 crore in FY11 and Rs 13.45 crore during FY10. The company is placed fifth on the list. The YTD returns have been 20.71 per cent on the scrip.

Arvind
Based out of Mumbai, the company is engaged manufacturing and selling of textiles and garments in India with an international presence too. It sells its products under its own brands such as Excalibur Gant, Flying Machine, Mainstream, Ruff & Tuff, and New Port University. There are also licensed brands comprising Energie, U.S.A. 1949, USPA, Arrow, Izod, Cherokee and Mossimo and joint venture brands, including Tommy Hilfiger and Bridge to Luxury. The company also operates 205 small format stores and six large format stores under the brand Megamart. On the net profit front the company has witnessed strong CAGR growth of 189 per cent over the last three years ending FY12. The net profit of the company at the end of March 31, 2012 stands at Rs 434.23 crore, witnessing an upward movement from Rs 134.8 crore in FY11 and Rs 52 crore during FY10. The company is placed sixth on the list. The YTD returns have been 16.19 per cent on the scrip.

Liberty Phosphates
Liberty Phosphates is primarily into manufacturing agricultural inputs like SSP fertiliser, NPK fertiliser and magnesium sulphate. The company has manufacturing facilities in Baroda, Udaipur, Kota and Pali. The company’s other products include rock phosphate, HDPE bags, gypsum and sulphuric/spent acid, among others. The revival of the SSP industry, which was earlier hampered by unfavourable government policies, has resulted in the robust performance of the company. On the net profit front the company has witnessed strong CAGR growth of 188 per cent over the last three years ending FY12. The net profit of the company at the end of March 31, 2012 stands at Rs 53.91 crore witnessing an upward movement from Rs 35.19 crore in FY11 and Rs 6.48 crore during FY10. The company is placed seventh on the list. The YTD returns on Liberty Phosphates have been 154.47 per cent.

J B Chemicals & Pharmaceuticals
J B Chemicals & Pharmaceuticals (JBCPL) is a pharmaceutical company involved in the manufacturing of a range of products and dosages in the form of tablets, external applications, herbal liquids, capsules, etc. The company is a major exporter of drugs with exports constituting more than 50 per cent of the company’s revenues. JBCPL has a strong presence in various countries such as Russia through a wholly owned subsidiary and in Australia and Romania through synergies. On the net profit front the company has witnessed strong CAGR growth of 152 per cent over the last three years ending FY12. The net profit of the company at the end of March 31, 2012 stands at Rs 642.70 crore, witnessing an upward movement from Rs 118.19 crore in FY11 and Rs 101 crore during FY10. The company is placed eighth on the list. The YTD returns have been 19.26 per cent on the scrip.

PTC India Financial Services
PTC India Financial Services (PFC), a special purpose investment vehicle of PTC India, was set up to provide financial services to players in India’s energy value chain. The operations of PFC include investing in equity and/or extending debt to power projects in generation, transmission and distribution and in other areas like gas, LNG, ports, non-conventional energy projects, etc. The company has a huge list of projects in its portfolio and has seen proliferation in its topline and bottomline since inception. On the net profit front the company has witnessed strong CAGR growth of 146 per cent over the last three years ending FY12. The net profit of the company at the end of March 31, 2012 stands at Rs 154.04 crore, witnessing an upward movement from Rs 37.03 crore in FY11 and Rs 25.45 crore during FY10. The company is placed ninth on the list. The YTD returns have been 51.98 per cent on the scrip.

Future Capital Holdings
Future Capital Holdings (FCH) is a financial services provider for retail and wholesale investors. The company is using its retail business (Big Bazaar, E-Zone and Home Town) to leverage the reaching of its financial services business by creating a model that makes the company a consumer-centric retailer of financial products and services. FCH has been seeing copious amounts of growth since the last few years. On the net profit front the company has witnessed strong CAGR growth of 131 per cent over the last three years ending FY12. The net profit of the company at the end of March 31, 2012 stands at Rs 92.19 crore, witnessing an upward movement from Rs 55.26 crore in FY11 and Rs 17.32 crore during FY10. The company is placed tenth on the list. The YTD returns have been 19.26 per cent on the scrip.