Return on sales of 22 Tata Group companies increased during 2003-04 as against the corresponding period last year, indicating a better performance of the Tata group companies. Of the 22 Tata group companies selected for this study, 91 per cent were found to have increased their efficiency during the period 2003-04. 

Only profit-making Tata group companies during 2003-04 and 2002-03 have been considered for this study and traces the trend of return on sales for these 22 Tata group companies during 2003-04 against the period 2002-03. 

Total sales of 22 Tata group companies have increased by 28.3 per cent to Rs 38,477 crore during 2003-04 from the level of Rs 29,991 crore during the previous year in the same period and their combined net profits have increased by 62.4 per cent to Rs 3,781 crore during 2003-04, resulting in an increase in return on sales higher from 7.8 per cent in 2002-03 to 9.8 per cent in 2003-04. 

Of these 22 Tata group companies, the top five, according to the profit after tax (PAT) to sales ratio during 2003-04, are Tata Investment (95.8 per cent), Tata Sponge Iron (19.6 per cent), Tata Metaliks (17.5 per cent), Tisco (16.3 per cent) and Benares Hotels (14.3 per cent). Out of the 22 Tata group companies, 2 companies namely Tata Chemicals and Tata Power have witnessed a fall in PAT to sales ratio, while 20 have shown a higher ratio in 2003-04 compared with 2002-03. 

A significant improvement in PAT to sales ratio in 2003-04 was noticed in the case of Indian Resort Hotels (5.3 per cent in 2002-03 to 11.0 per cent in 2003-04), Tata Infotech (6.7 per cent to 10.2 oer cent), Tata Investment Corpn (86.8 per cent to 95.8 per cent), Tata Motors (2.8 per cent 5.2 per cent), Tinplate Co (4.6 per cent to 10.4 per cent) and Tisco (11.6 per cent to 16.3 per cent). 

According to company source, a number of factors such as better product mix, increased sales of branded products and the higher prevailing prices of steel contributed to the increase of PAT to sales ratio of Tisco during 2003-04. 

The top five Tata group companies in terms of increase in net profit during 2003-04 were Tinplate Co (189.5 per cent), Indian Resort Hotels (186.9 per cent), Tata Motors (170.0 per cent), Stewarts&Lloyds (104.5 per cent) and Tata Infotech (95.3 per cent). For these Tata companies, PAT to sales ranged between 3.5 per cent and 11 per cent.