India Inc kicks off fiscal year with profit surge
India Inc’s profits are shining and indications are that with normal monsoons, both revenues and profits may look healthy in the new year.
In an analysis of 63 companies of the list of BSE 500 that had announced their results for the last quarter of 2009-10 by April 24, the year-on-year aggregate profit growth was a healthy 26 per cent, with the corresponding revenue growth at 50 per cent.
The total profits of the 63 firms rose from Rs 15,156 crore in the quarter ended March 2009 to Rs 19,099 crore in the latest quarter.
Compared with the previous quarter, the January-March quarter showed revenue growth of 5.5 per cent, while profits rose 12 per cent.
“This is likely to be the broad trend for the fourth quarter performance particularly for the banking, mining and IT sector,” said Alex Mathews, head of research, Geojit Securities.
Of the 63 companies that have come out with their results on 8 have witnessed a drop in their revenues over the same quarter last year while 14 witnessed a fall in their profit numbers.
Surging global commodity prices helped firms like Sesa Goa and Hindustan Zinc, while petroleum companies also saw sharp rises in revenue.
Reliance Industries saw its revenues grow by 121 per cent and Essar Oil saw its revenue grow by 54 per cent.