India Inc is likely to witness a 22.8 per cent growth in the Profit-After-Tax (PAT) margins in the current fiscal, an economic think-tank said in its report.
"Corporate sales growth will average at a meagre 4.1 per cent in 2009-10. At the same time, PAT will rise by a
robust 22.8 per cent," the Centre for Monitoring Indian Economy (CMIE) said in its latest report on the state of the
Indian economy.
The manufacturing sector (excluding petroleum sector)would report a 24.3 per cent PAT growth mainly on account of
low raw material prices and soft interest rates, CMIE said, adding PAT of the financial and non-financial services would
rise by 32.2 per cent and 20.4 per cent, respectively.
According to the report, corporate India took a hit on its sales due to the fall in commodity prices, drying up of
export demand and postponement of purchases by the domestic consumer following the global liquidity crisis.
"From 35 per cent in the first-half of 2008-09, its sales growth slumped to 12.1 per cent and 0.1 per cent in
December 2008 and March 2009 quarters, repectively," CMIE said.