Recovery in distressed sectors such as banks and oil depict a much better picture of India Inc.
IF THE RECENT DECEMBER quarter results are an indication, India Inc., did not shiver through a wintery financial landscape after all. The impact of demonetisation has been restrained, while India, Inc., appears to have put up a much better show overall. During the initial days of the de-monetisation, gross domestic product (GDP) estimates were being cut drastically and analysts even expected GDP growth to slip below the five per cent mark. Markets expected profits of India, Inc., to dip substantially as consumption of some white goods, discretionary and utility companies shrank drastically.
But, it turns out, the figures are much plumper. An analysis of 1,275 companies which reported third quarter FY17 results proves otherwise. Year on year (y-o-y) revenue growth, at 8.6 per cent, has been higher. To gauge the impact of the demonetisation, growth figures were calculated for companies with revenues of more than Rs 50 crore. No contraction has been seen.
In fact, profit growth has surged sharply. The December quarter net profit for the companies analysed by BW Research zoomed 19 per cent over the corresponding previous year quarter. This, of course, could be attributed to the lower base.
However, quarter on quarter (q-o-q) figures have slightly declined. Profit growth in the December FY17 quarter dipped a mere 3.5 per cent. This stemmed from interest costs increasing over the last quarter. Quarter on quarter (q-o-q) revenue figures rose 4.6 percent over the September quarter due to higher realisations.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences