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Meltdown yet to hit Indian firms
By siliconindia
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Monday, 20 October 2008, 22:46 IST
New Delhi: Indian companies has shown 32 percent growth which is marginally more than the 31 percent top line growth in Q2 of FY 2008. The companies which have filed their financial results for the quarter ending September 2008 shows that net sales for 175 firms have grown, states a study by The Economic Times. Sales growth in the last five quarters has been in the 27-34 percent range. This comes at a time when Governments and economists are still busy revising down India's GDP growth.
Due to rising interest costs and high fuel and power expenses the quarterly net profit has been shrinking. The shrink has been to a modest 12 percent. These results are for the quarter Q2 as against 32 percent growth during Q2FY08. The Q3FY08 stands at a sizzling 48 percent.
During the quarter under review the good news is that aggregate profit shows a bounce back in the quarter. There has been a slump to just two percent during Q1 FY09 with the result standing at 10 percent in Q4FY08.
Going by the performance only a handful of companies listed in the Sensex have shown improvement. The aggregate growth of 41.7 percent has been recorded by five companies out of the 30 listed on the sensex. They showed 34 percent growth compared to the same quarter the previous year. These five companies are Infosys, Satyam, HDFC, HDFC Bank and L&T. These five firms account for one-third of the aggregate revenues and 40 percent of the total profit.
There has been relief for Indian companies due to decline in global commodity prices under different heads.