New Delhi: Donations by listed companies grew eight percent during the fiscal ended March 2009, a period when corporate India was faced with subdued demand and lower profits.

As per a study by Economic Times, disclosures made by companies showed that 760 companies donated Rs. 786 crore in FY09, up from Rs. 726 crore in the year-ago period. This was despite their combined net profit falling 10 percent. In the previous fiscal, listed companies had opened up their heart with a sharp 38 percent jump in donations much higher than 22 percent growth in their earnings.

Many firms donated more despite deterioration in standalone profits, including Ambuja Cements, Gujarat Alkalies, Videocon Industries, UltraTech and Hindustan Zinc. As many as 108 companies donated over Rs. 1 crore, up 20 percent over the previous year. Although Reliance Industries' donations declined by a quarter to Rs. 82.6 crore, it led the list of top donors that included Jindal Steel and Power, JP Associates, Hindalco, Bharti Airtel, Ambuja Cements, Infosys, Mundra Port, Grasim and Torrent Power.

Companies donate to NGOs, and national calamity relief funds besides their own foundations. For instance, Infosys, which has been among the top donors for the last few years, formed Infosys Foundation in 1996, which supports the underprivileged section of the society in four key areas, social rehabilitation and social upliftment, learning and education, healthcare and arts and culture. Infosys has made grants of Rs. 19-20 crore each to the foundation over the last three years.

Among other large donors, Jindal Steel and Power, led by Navin Jindal, who is also a member of parliament, representing Kurukshetra for Congress party, saw donations rise over four-fold to Rs. 53 crore. Suzlon gave Rs. 14.9 crore, more than double the sum it donated in the previous year even as the firm reported losses last year.

According to Seemantinee Khot, Head, corporate social responsibility (CSR), Suzlon, "We do not link our CSR investments to profitability of the company, but rather associate it with revenues because we believe that we can't stop investing in CSR initiatives and the communities just because times are challenging. It is critical to preserve momentum in such endeavours, or we run the risk of losing the good work done. Moreover, whatever we, or anyone else for that matter, invest in CSR, it's a small contribution compared to what needs to be done; so we have to work to make sure that each rupee spent delivers the most social profit."

Others who donated much more last year include Mundra Port, Cadila, Hero Honda, Sesa Goa, Hindustan Construction, Madras Cement and Thermax. Those managing non-government organisations (NGOs) say their budgets tightened as companies grappled with slowdown in business.

Says Sushmitha Paidi, who looks after corporate partnerships at Youthreach that works with disadvantaged children, youth and women in the country, "Companies we were already working with were supportive, but raising funds for new projects proved difficult as there were no takers." But she adds that things have started looking up once again and the NGO was finding support from new entrants in the market.

Helpage India Deputy Director (corporate funding) Manjeet Kumar Singh also acknowledged that, in general, companies tightened their charity purposes, "MNCs and private sector companies have curtailed CSR budget in a big way due to the economic slump. We managed to meet our target last year as we approached school students for raising funds wherein we requested them to make voluntary contributions towards old age homes."

Firms that donated less last year include public sector biggies HPCL and Gail, who dropped out of the top 10 list, besides Hindalco, Grasim, Bharti Airtel, JSW Steel, M&M and Bosch.