India Inc net profit to soar 17.7%: CMIE

Agencies Posted: Nov 19, 2012 at 0948 hrs
Mumbai Led by financial services sector, India Inc is likely to post 17.7 per cent growth in net profits this fiscal on the back of a 15 per cent rise in revenues, says a CMIE forecast.

The growth in profits going forward is expected to be led by moderation in input prices and rupee appreciation, a report by the Centre for Monitoring Indian Economy (CMIE) said.

The profit growth will be broad-based with all the major segments of the corporate sector expected to report 15 per cent rise in sales during the fiscal, the report noted.

The profit of the manufacturing sector is likely to grow 15.9 per cent while non-financial and financial services sectors have been pegged at 19.9 percent and 20.9 percent, respectively this fiscal.

Observing that corporate profits will grow at a healthy pace in the second half of the fiscal, the CMIE forecasts a strong 30.3 percent growth in the December quarter while 15.5 percent in the March quarter.

"However, the high level of growth in the second quarter was partly due to the forex gains during the period," it said. Adding the low-base of the past fiscal made the profit growth look impressive.