India Inc's sales and profits to rise in FY'10: CMIE | business | Hindustan Times
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India Inc's sales and profits to rise in FY'10: CMIE

business Updated: Mar 05, 2009 13:59 IST

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Corporate India's sales and profitability are expected to improve in FY'10, Centre for Monitoring Indian Economy (CMIE) said in its monthly review.

"We expect the profit performance of corporate India to improve in FY 10 with the petroleum products companies returning into profits in the March 2009 quarter," the report said.

Aggregate net profits of Indian corporates are expected to rise by 74.4 per cent. The PAT margin will also improve to 7.7 per cent from 4.8 per cent in FY 09, it said.

India Inc reported a major deceleration in sales growth to 11.9 per cent in the December 2008 quarter from 33.9 per cent in the September 2008 quarter.

The prime reason behind the slower growth was the poor sales performance of the manufacturing sector due to the steep fall in prices of commodities such as ferrous metals, edible oils, petroleum products and the weak export demand for textiles, gems and jewellery.

Although aggregate net profits plummeted by 40.5 per cent, the PAT margin improved to 4.7 per cent compared to 3.5 per cent in the preceding quarter.

This was mainly because of the reduction in losses incurred by the petroleum products sector, it said.