`Non-fin services sector PAT to grow at 14.9% in FY 10`
PAT growth of the non-financial services sector is likely to see an improvement and is expected to clock around 14.9 percent in the current fiscal.
Mumbai: Profit-after tax (PAT) growth of the non-financial services sector is likely to see an improvement and is expected to clock around 14.9 percent in the current fiscal on account of an accelerated sales growth, an economic think-tank said in its latest report.
"We expect the PAT growth of the non-financial services sector for the year 2009-10 to be 14.9 percent," Centre for Monitoring Indian Economy (CMIE) said in its report on the state of the Indian economy.
PAT growth is expected to improve in tandem with sales growth which would average at 10.1 percent, it said.
According to CMIE, starting from 8.3 percent in the June 2009 quarter, the growth would accelerate to 20.7 percent in the December 2009 quarter.
However, the report forecast a slightly slower growth in Q4 of the current fiscal at 17.4 percent on account of the high base last year.
The PAT margin at 12.2 percent during the quarter would, however, be higher than those in the preceding three quarters, the report said.
On the sales side, the CMIE said, in June 2009 quarter, sales would grow by three percent and in September quarter by 5.9 percent.
"This growth will still be weaker than the close to 30 percent growth recorded in the first quarter of FY 09," the report said.
"Fortunes of most of the non-financial services sector such as software, hotels, shipping and aviation are closely linked to the global economic conditions," the report said.
These sectors are expected to report a pick-up in sales growth in the second half of 2009-10 following the expected revival in the global economy.