The net profits of a sample of 2,934 companies by Care Ratings, declined by 28.3 per cent
Representational image
Mumbai: The positive measures taken by the Narendra Modi government in terms of enabling environment for business, like clearing major projects, cutting red tape etc., has not been reflected in the study on corporate performance for Q3 and nine month for FY15.
The net profits of a sample of 2,934 companies by Care Ratings, declined by 28.3 per cent over a positive growth of 2.5 per cent last year while net sales declined by -0.2 per cent in Q3 as against 6.5 per cent rise in the previous year.
“The lower growth in sales volumes could be largely attributed to the weakness in the global and domestic demand conditions. Also despite the softening inflation in the past few months the gains from the same remain invisible indicated by the declining profitability,” said Madan Sabnavis, chief economist Care Ratings.
The top 407 companies with sales above Rs 1,000 crore each, which comprised 15 per cent of the sample, accounted for approximately 90 per cent of the total sales driving the overall performance recording a 4.8 per cent increase in net sales and high net growth of 9.2 per cent.
The group with sales between Rs 500 - Rs 1,000 crore constituting around 8.3 per cent registered 4.8 per cent growth in net sales and net profit rose by 5.5 per cent. In contrast the smaller firms with less than Rs 100 crore which constitute 50 per cent of the sample have seen losses rise by 34.9 per cent.
( Source : dc correspondent )
Next Story
