Indian companies continue to shine, but profit slows

Net profit of 1,765 Indian companies rose 46%, and sales increased by 15% in Q1.

Indian companies continue to shine but their sales and profit growth rates in this quarter have failed to match the scorching pace set in the previous quarters. An analysis of the financial results of 1,765 companies in the first quarter (April-June) of 2005-06 showed net profits increased by 46.02 per cent and sales moved up by 15.01 per cent, writes B. G. Shirsat, of The Business Standard.

During the previous two quarters (January-March 2005 and October-December 2004), the net profit of these companies had grown by over 50 per cent and sales were up by 21 per cent. The good news is small and medium companies are scaling up their performance substantially.

Profits of Indian Companies
Quarter ended Growth rate in net profits
No of
cos
Average
growth
(%)
Over 100%
% chg (Cos)
Average
% chg (Cos)
April-June 05 1765 46.02 282.09 (388) 120.99 (595)
January-March 05 1882 56.59 197.84 (336) 116.19 (437)
October-December 05 1882 50.16 160.77 (329)  88.44  (498)
July-September 05 1882 34.14 193.22 (295)  93.36  (509)
 April-June06 1882 51.40 210.20 (282) 151.22 (435)

[Business Standard]