Despite rising inflation and a tight monetary regime, India Inc has managed to deliver in the March quarter
Moneylife Digital Team 01 June 2011

The Indian corporate sector has managed to turn in a surprisingly robust performance in Q4 of this fiscal, despite a gloomy outlook—operating profit of 1,094 companies grew by 20% and net profit grew by 17%

Despite all the talk of gloom and doom, the Indian corporate sector has performed better than expected in the fourth quarter of the year 2010-11. While a few negative factors were causing concern like rising inflation and a tight interest rate regimeIndian companies have posted better-than-expected results. This brings out the inherent resilience in the country's corporate sector.

The sales growth of 1,094 companies of the sample size of 1,300 companies tracked by Moneylife grew by 22%; operating profit went up 20%; net profit was up by 17%. Tata Consultancy Services Ltd reported a 37% increase in sales to Rs7,969.75 crore; it also clocked a healthy 49% rise in net profit (at Rs2,149.18 crore). Its operating profit was also up by 48%. Bharat Heavy Electricals Ltd managed a 32% increase in sales (at Rs18,380.50 crore) and a healthy increase in operating profit (49% up at Rs4,293.60 crore).  

Despite the fact that the current macroeconomic outlook has not been very bright for oil companies, and with pressure from under-recoveries, BPCL (Bharat Petroleum Corporation Ltd) managed to post a huge 45% increase in operating profit at Rs1,664.55 crore.

Reliance Power Limited and Southern Petrochemicals Industries Corporation Limited have shown sharp growth in sales to Rs21.92 crore and Rs868.08 crore during this quarter (March 2010 sales were Rs1.32 crore and Rs119.90 crore respectively).

In the jewellery counter, Su-Raj Diamonds & Jewellery Limited has shown 75% sales increase to Rs1,567.69 crore and 20% increase in net profit to Rs33.81 crore.

But there were a few firms which did not perform in this quarterRanbaxy Laboratories Limited reported a 43% decline in sales to Rs1,095.81 crore. Moser Baer India Limited suffered a 21% decline in sales to Rs458.95 crore in the quarter ending March 2011.

Tata Communications Ltd maintained its sales performance with quarterly sales of Rs863.60 crore.

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