Corporate sales to grow 21.6%, profits to dip 7% in FY'12:CMIE
Quotes

Corporate sales to grow 21.6%, profits to dip 7% in FY'12:CMIE

Last Updated: Sunday, January 22, 2012, 13:01
 
 Comment 0
 
Corporate sales to grow 21.6%, profits to dip 7% in FY'12:CMIE
Mumbai: Corporate India's sales are likely to grow 21.6 percent but profits are expected to fall by 7.2 percent in the current financial year 2011-12, Centre for Monitoring Indian Economy (CMIE) has said.
     
Profits have fallen 13.2 percent in the first half of 2011-12 due to steep rise in raw material and fuel prices, high interest rates and delay in payment of cash subsidy to the oil marketing companies (OMCs) by the Government.
     
A sharp depreciation in rupee since September brought mark-to-market (MTM) losses to firms and further pulled down profits, the think-tank said in its monthly review.
     
While high input costs and interest rates continue to haunt Indian companies, the Ministry of Corporate Affairs (MCA) has provided them some relief by allowing capitalisation of MTM losses on long-term loans taken for the acquisition of
fixed asset till March 2020.
     
This exemption was earlier available only till March 2012 and only to companies which had opted for it in 2008-09.
     
In spite of this, corporate India is expected to report substantial amount of forex losses in the December 2011 quarter. This is because major chunk of the forex liabilities of corporate India are short-term, CMIE noted.
     
"We expect corporate profits to fall by 9.1 percent in the December 2011 quarter."
     
They are, however, expected to rise by 9.9 percent in the January-March quarter driven by a robust 40.2 percent rise in net profits of the banking industry due to lower provisions and low base, the research outfit stated.
     
CMIE expects India Inc to record robust 21.6 percent growth in sales in 2011-12, on top of 20.3 percent rise in FY'11.

PTI




First Published: Sunday, January 22, 2012, 13:01


Comments


comments powered by Disqus
BMW-X3
BMW-X3
Forbes Best Places for Biz 2014
Forbes Best Places for Biz 2014
Hyundai Elite i20
Hyundai Elite i20
Honda Mobilio MPV
Honda Mobilio MPV
Tata Zest first drive review: In pics
Tata Zest first drive review: In pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved