$45 B cash profit in sight for India Inc.
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$45 B cash profit in sight for India Inc.

By agencies   |   Wednesday, 23 November 2005, 08:00 Hrs
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NEW DELHI: India Inc's cash profit is set to cross $45 billion in the current financial year. In the first half of the year (April-September 2005), 3,050 companies registered cash profits of $21.39 billion, a paper said.

Historically, over 55 percent of the cash profits of the Indian corporate sector come in the second half of the year, the Business Standard said.

In April-September 2005, the cash profit of the corporate sector increased by 14.32 percent compared to the same period in the previous year.

Even if the growth momentum continues at the same pace, India Inc's cash profit would be over $48.91 billion in 2006. The cash profit in the second half of the last financial year was $22.49 billion taking the figure for the trailing 12 months ended September 2005, the paper said.

The top 100 companies ranked by cash profits during the trailing 12 months account for over 78 percent of India Inc's profits. There are around 37 companies in the public sector that account for almost 50 percent of the cash profit of the top 100 companies. The study further reveals that the public sector companies are the major source of cash profit for the corporate sector.

Among the sectors, refineries (including oil, gas and marketing companies), banks, steel and information technology generate over half of the cash profit of India Inc. The refineries account for 24.64 percent, followed by banks (10.51 percent), steel (8.65 percent) and information technology (6.32 percent).

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