Here is a list of companies that have earned a major portion of their income from other sources rather than from their operating activities...
19-Jun-2013 •Research Desk
Profitability from core operations is probably the first thing that a person looks for before investing in a company. But here are some companies that have been earning a major chunk of their income from sources other than their actual operating activities. For the following exercise, banks and financial institutions have been excluded from the filters because income (such as forex services, investment banking fees, etc) forms an inherent part of these institutions.
To get a list of such companies we have used the following filters:
• A minimum market cap of Rs 1,000 crore
• Income from other sources as a percentage of PBIT should be greater than 30 per cent for all of the previous 5 years
• The company's average income from other sources as a percentage of PBIT should be greater than 50 per cent for the previous 5 years combined