Industry sales, profit growth at 7-quarter low (Live mint.com 1st Feb 2008)A Mint analysis of 1,170 companies, for which numbers are available for the December quarter and the corresponding quarter of 2006 shows that profit growth has dropped to 14.49%
Indian companies are witnessing a drastic slowdown in net sales and profit growth rates, both falling to their lowest levels in seven quarters on the back of a significant increase in interest costs.
A Mint analysis of 1,170 companies, for which numbers are available for the December quarter and the corresponding quarter of 2006 shows that profit growth has dropped to 14.49% and net sales growth has fallen to 15.85% from 59.64% and 29.93%, respectively. The burden of interest cost on this set of firms grew by 47.91% for the December quarter from the year-ago period—its highest growth rate in the last eight quarters that Mint tracked.
Reserve Bank of India (RBI) governor Y.V. Reddy left key policy rates unchanged in the central bank’s quarterly review of the monetary policy on Tuesday, but admitted that there was a “moderation” of industrial production, corporate sales and profitability. More
Indian companies are witnessing a drastic slowdown in net sales and profit growth rates, both falling to their lowest levels in seven quarters on the back of a significant increase in interest costs.
A Mint analysis of 1,170 companies, for which numbers are available for the December quarter and the corresponding quarter of 2006 shows that profit growth has dropped to 14.49% and net sales growth has fallen to 15.85% from 59.64% and 29.93%, respectively. The burden of interest cost on this set of firms grew by 47.91% for the December quarter from the year-ago period—its highest growth rate in the last eight quarters that Mint tracked.
Reserve Bank of India (RBI) governor Y.V. Reddy left key policy rates unchanged in the central bank’s quarterly review of the monetary policy on Tuesday, but admitted that there was a “moderation” of industrial production, corporate sales and profitability. More
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